Prince George's County Council Considers Two-Year Moratorium on Data Center Development | The Locally Times
The proposed legislative pause aims to mitigate the impact of energy-intensive facilities on the local power grid, which currently serves over 967,000 residents.
On October 22, 2024, the Prince George's County Council introduced legislation to implement a 24-month moratorium on the approval of new data center applications. This regulatory pause is scheduled to remain in effect until October 22, 2026, unless the Council votes to terminate the restriction earlier. The legislative proposal, identified as CB-088-2024, seeks to address concerns regarding the 15% increase in regional electricity demand projected by local utility providers over the next 5 years. Data centers often require massive amounts of power, with some individual facilities consuming upwards of 100 megawatts of electricity to maintain operations for 24 hours a day, 7 days a week. Prince George's County, which encompasses 499 square miles, has seen a surge in interest from developers seeking to capitalize on the 30% growth in digital infrastructure needs across the mid-Atlantic region. The proposed moratorium would apply to all new zoning applications for data centers, effectively halting the processing of any site plans submitted after the October 22, 2024 introduction date. During this 2-year window, the Prince George's County Planning Department is tasked with conducting a comprehensive study to evaluate the long-term fiscal impact of these facilities, which can cost local governments millions in infrastructure upgrades. For instance, the installation of high-capacity transmission lines can exceed $50 million per project, a cost often shared between developers and the public utility sector. Local officials have noted that the 11-member Council must balance the potential for tax revenue against the strain placed on the 1,200 miles of electrical distribution lines currently managed by regional providers. While a single data center might generate $2 million in annual tax revenue, the environmental and infrastructure costs associated with 10 or more such facilities could overwhelm existing grid capacities. The Prince George's County Department of Permitting, Inspections and Enforcement currently manages over 50,000 active permits, and the addition of complex data center projects would require a 20% increase in specialized technical staff to ensure compliance with safety codes. Neighboring jurisdictions, such as Loudoun County, have already grappled with the implications of hosting over 300 data centers, which account for nearly 25% of their total tax base. Prince George's County Council members are reviewing data from the 2023 fiscal year to determine if the 10% growth in commercial property tax revenue is sufficient to offset the potential loss of land that could otherwise be used for 500 or more residential housing units. The moratorium is designed to provide a 730-day period for the Council to draft new zoning ordinances that mandate higher standards for energy efficiency and noise mitigation. If the legislation passes, the 2-year pause will allow the Prince George's County Economic Development Corporation to refine its strategy for attracting industries that require less than 50 megawatts of power per site. The Council is expected to hold a public hearing on the matter within 45 days of the initial introduction. During this time, the 24-month moratorium will be subject to intense scrutiny from industry lobbyists who represent firms managing over $10 billion in data center assets. The Prince George's County Council will ultimately decide if the 2026 expiration date provides enough time to establish a framework that protects the 240,000 households in the county from potential energy price spikes. By the time the moratorium concludes on October 22, 2026, the county expects to have a clearer picture of how to integrate these facilities without compromising the 99.9% reliability rate currently maintained by the local electrical grid.