The Maryland legislature passed, and the Governor recently signed, The Utility RELIEF Act, which includes important protections for consumers, communities, and the environment on AI Data Centers that are proposed across the state.
There are some important wins on data centers that Green America and allies supported:
- The definition of hyperscale data centers was expanded to include smaller data centers (25 MW and up).
- New Voluntary Clean Capacity Rating Program. This is an incentive program that encourages data centers to bring and pay for their own clean energy to include battery storage and non-emitting sources.
- Ratepayer protections. Data centers will pay for transmission, distribution, interconnection, and new capacity costs.
- Prohibits the construction of data centers in low-income communities in Baltimore City.
Green America joined allies, including Nature Forward and Chesapeake Climate Action Network, in urging the Maryland Legislature to put protections in place for proposed AI data centers in the state before they get built – and the resulting legislation is an important first step – for Maryland and for other states working to limit harms and increase benefits from data centers.
In particular, the Voluntary Clean Capacity Rating Program includes a number of provisions that are in line with Green America’s Community Partnership Model for Data Centers – a roadmap for building data centers that support communities instead of harming them.
But, on the minus side:
- The incentive program for clean energy for data centers won’t take effect until the program is enacted by the Public Service Commission in December 2027. In the meantime there is no incentive for using clean energy to power data centers.
- There are incentives for nuclear power, which is counted as a non-emitting source, with costs borne by ratepayers.
- The data center provisions are part of the overall energy bill that includes extensive cuts to the Maryland EmPOWER program, which provides rebates and incentives for homeowners to adopt energy efficiency, and electrification, and assists low-income households. The program is a driver of the state meeting its climate goals, and these reductions will imperil meeting these goals. (Green America supported the inclusion of the data center regulations but not the overall energy bill for this reason).
What’s next? Ensure that AI Data Centers do not harm Maryland Communities. Green America will:
- Work with counties and municipalities throughout the state to ensure that any data centers built support communities – in addition to our Community Partnership Model, we are sharing our new guide: 10 Steps to Ensure an AI Data Center Benefits Your Community, and advocating with our members to ensure community participation in and benefit from data centers.
- Continue to pressure the largest tech companies – Google, Microsoft, Amazon, and Meta to end their use of polluting energy sources for data centers that are devastating communities nationwide.
- Ensure that only renewable energy sources, including solar, wind, and battery backup are the only sources of energy for data centers, and that nuclear power is not counted as clean energy in any data center project.
- Encourage any data center that is built to include Virtual Power Production (VPPs) that will enable homeowners to sell energy to data centers from battery storage (including from electric vehicles) at their home and are paid for this energy.
