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Maryland Sets AI Guardrails as States Confront Data Center Boom

Maryland Sets AI Guardrails as States Confront Data Center Boom

Summary

Maryland's Governor Wes Moore has signed an order to regulate large data centers, requiring a standard review of their impact on electricity, water, communities, and the economy. The state will create a task force and public dashboard to increase transparency, while Texas is taking a different approach by pausing data center permits until audits of their resource use are finished.

Key Facts

  • Maryland's new rules apply to data center projects using 25 megawatts or more of power.
  • A task force will assess projects based on protecting taxpayers, the power grid, the environment, and community input.
  • A public dashboard will show data center locations, developers, and their electricity and water needs.
  • Governor Wes Moore wants more local control and accountability for data center development.
  • Maryland may end its data-center tax exemption, but this needs approval from the state legislature.
  • Texas Governor Greg Abbott has ordered a temporary stop on data center permits until audits of their power and water demands are complete.
  • Texas agencies are evaluating how much electricity and water data centers actually use before allowing new projects.
  • Maryland and Texas show different strategies states are using to manage the growth of large data centers driven by artificial intelligence needs.
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