Maryland puts every data centre of 25 MW or more through a state task-force review, and the governor backs repealing its tax exemption

Maryland puts every data centre of 25 MW or more through a state task-force review, and the governor backs repealing its tax exemption

2 October 2026 — Maryland's Governor Wes Moore signed an executive order on 23 September 2026 that sets a state-level review for large data centres. The order creates the Maryland Data Center Task Force, which reviews "every large data center proposed in Maryland that covers 25 megawatts or more as soon as it seeks any State action – including a permit, incentive, or letter of support".

Not yet independently verified. This rests on the governor’s own announcement, read on 2 October, with a law firm’s summary and an industry statement; the order’s full text was not read, so how it treats applications already under review is not stated here. We will update this when it can be confirmed, and remove this note.

How the review works

• Each project gets one of three written, public determinations: Aligned, Conditionally Aligned or Not Aligned.
• The review applies principles covering ratepayer and grid protection, economic benefit, community voice, environmental protection and transparency.
• According to Venable's summary, projects found aligned are eligible for faster review and incentives.

The governor also "announced his support and commitment to work directly with the General Assembly in the upcoming legislative session to repeal the Data Center Sales and Use Tax Exemption, originally enacted in 2020". The Maryland Tech Council warned the same day of regulatory uncertainty for the sector.

Why it matters

Data centres have become a political issue in many US states because of their demand on the grid and on electricity prices. Maryland is moving from case-by-case local decisions to a single state test, published for each project. If the tax exemption goes, the cost of equipment for a Maryland data centre rises compared with neighbouring Virginia.

Who should act

• Developers and operators planning Maryland sites of 25 MW or more should prepare to show grid, ratepayer and community benefits early, before applying for any state permit or incentive.
• Companies choosing colocation or cloud regions in the Mid-Atlantic should ask providers how planned Maryland capacity is affected.
• Equipment vendors whose sales depend on the exemption should follow the 2027 legislative session.

Sources

• Office of Governor Wes Moore: Governor Moore signs executive order codifying responsible data center development framework — 23 September 2026
• Venable: Maryland governor issues executive order (read 2 October 2026) — 2 October 2026
• Maryland Tech Council: statement on Maryland AI framework and data center executive order — 23 September 2026