Data centers have become a central component of modern life. The demand for cloud computing and storage, and especially the use of artificial intelligence (AI), has led to a rapid growth in “hyperscale” data center projects. These vast, energy-intensive facilities can pose risks to the natural environment, public health, and electricity rates for Maryland families unless protective actions are taken.

With these risks in mind, Maryland League of Conservation Voters is calling for a temporary pause on building new hyperscale¹ data centers until communities, counties, and the state have collaborated to establish clear safeguards for protecting ratepayers and the environment, as well as minimum standards for economic and community benefit.

Specifically, we urge state lawmakers to consider policies that:

1. PROTECT RATEPAYERS: The cost of powering hyperscale data centers has contributed to skyrocketing home energy bills. State lawmakers must ensure that ratepayers do not pay for the costs of building and supplying energy to data centers. Maryland has taken important steps to avoid this by establishing a large load registry and a large load tariff. But the state does not require data centers to bring their own energy and has not put in place any protections to hedge against stranded infrastructure costs; technology is changing so quickly that there is much more speculation in the projected energy demand for data centers than in other sectors. In order to protect ratepayers, Maryland must also collaborate with other states and with our regional grid operator, PJM, whose actions have an impact on Marylanders.
2. MINIMIZE IMPACTS TO SURFACE WATER AND GROUNDWATER: The amount of water a data center uses and the impacts to local water supplies from data center use can vary greatly. Data centers must be planned and built to anticipate local or regional water shortages that may arise. Additionally, data centers need to ensure water quality is protected by providing detailed information to county and state regulators on any chemicals used in their systems, including those which may be released into local water sources or treatment plants.
3. PRIORITIZE CLEAN ENERGY: The proliferation of data centers has increased production of energy from polluting fossil-fuel energy sources. These projects are expensive, time-consuming, and inefficient, adding to the already challenging utility costs facing Maryland families. Expanding in-state and offshore renewable energy and battery storage projects will protect the reliability of our energy supply, better control costs to consumers, and more rapidly secure the stability of our grid. Maryland has taken an initial step to provide incentives for data center companies to bring their own clean energy. The state needs to find other actions that support achieving this outcome.
4. PUBLIC HEALTH IMPACTS: Data centers require backup generation, which is most often provided by diesel generators. Diesel emissions include gases and fine particulates that can worsen respiratory ailments and lung function, as well as increased risk of heart problems, premature death, and lung cancer. Communities near data centers also report significant noise pollution from the massive cooling systems necessary to keep the computers operational. State and local regulators need to ensure that siting of data centers does not add to the pollution loads in communities, with specific protections for already overburdened and underserved communities. We must identify a regulatory framework for the siting of data centers that addresses the cumulative pollution impacts and ensures transparency, community input, and protections.

CONCLUSION:

We recognize that data centers can create economic growth, not just in Maryland, but nationwide. Across the country, however, communities are speaking up and calling for regulations and planning to ensure that data center growth does not come at the cost of the community’s health or pocketbooks.

Maryland LCV joins the call to temporarily pause the building of new hyperscale data centers in Maryland until communities and local and state regulators can create a path forward that ensures water quantity and quality are protected, pollution and community impacts are minimized, and ratepayers do not bear the financial burdens of building data centers but rather receive the benefits.

Maryland law defines “large load users” as at least 25 MW, which is how we are defining hyperscale data center