Montgomery County Council committees back 18-month moratorium on data center permits

ROCKVILLE, Md. - Montgomery County Council committees on Wednesday advanced an 18-month moratorium on data center permit approvals to allow local leaders time to establish regulatory guardrails.

What we know:

The Economic Development (ECON) Committee unanimously backed the proposed 18-month moratorium.

The Planning, Housing and Parks (PHP) Committee also reviewed and voted on an amended Zoning Text Amendment (ZTA 26-01), which focuses on defining large data centers and prohibiting them from the county.

According to county leaders, the moratorium is intended to provide the time and space needed to conduct research, engage with the community, and develop comprehensive regulations in collaboration with the state.

What they're saying:

"The reality is there are so many unanswered questions that we need to get this right," Councilmember Evan Glass noted during discussions.

"There's more to do. And we need to do it in an organized way. And so there's a lot that needs to be worked on with the community. And this will allow the time and space to do that," Councilmember Will Jawando said.

Industry representatives warn that a lengthy moratorium could have consequences. In a statement to FOX 5, the Data Center Coalition said local moratoriums would send a signal that the area is "closed for business" and could deprive communities of opportunities for investment and jobs while forcing Maryland to relinquish long‑term economic growth.

What's next:

County officials indicated that a new staff report analyzing the potential impacts of data centers is expected to be released soon.

Montgomery County Council President Natali Fani-González issued a statement praising the collaborative efforts of committee members to find a middle ground.

"The purpose of the amended zoning measure – together with the 18-month moratorium on permits for large data centers – is to allow the necessary time for the Council to deliberate on appropriate guardrails for large data centers in the County and do so in collaboration with the state," Fani-González said. "Indeed, I believe that regulatory certainty is necessary now so all stakeholders can clearly understand the rules of the road as we work out the comprehensive approach for data centers in Montgomery County."

The full Montgomery County Council is scheduled to take final action and hold a vote on both the moratorium and ZTA 26-01 on Tuesday, July 28.

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