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Regbase

The Data Center Divide

Anne Arundel County

This restriction takes precedence while in effect. The rating below excludes temporary restrictions.

Neutral Data Center Policies

Anne Arundel County’s enacted zoning changes make new data centers and expansions harder; upcoming rules would pause new applications through January 2028, with exceptions.

Rating from Maryland statewide as there are no scored current or future laws outside temporary restrictions for Anne Arundel County.

Incentives

Tax benefits

Creates a 15-year County personal-property assessment reduction for qualified data centers investing at least $10 million and creating at least 10 qualified positions: 100% for the first five taxable years and 50% for years 6–15.

Specific to Anne Arundel County only.

current law · County measure
Restricts where data centers may be built, repeals their county personal-property tax break, pauses certain development actions temporarily, and requires a work group to recommend further regulations.Maryland Bill 13-22 (2022)

What this means

The bill would remove data centers as allowed uses in several commercial, industrial, mixed-use, and Odenton Town Center districts, repeal the county property-tax reduction, and impose a temporary moratorium while new rules are considered (zoning changes and moratorium). Those barriers outweigh the easing of some parking and conditional-use rules, making new development and expansion significantly harder overall.

Timing

Bill No. 63-26 includes a temporary moratorium on actions related to developing data storage centers, but the provided source does not state when the moratorium expires or identify an ending condition.

People behind it

  • Introduced Bill No. 13-22.

  • Identified as the body introducing Bill No. 13-22.

  • Responsible, with the Anne Arundel County Economic Development Corporation, for developing the application and administering the assessment reduction.

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  • Responsible, with the Office of Finance, for administering the assessment reduction, reviewing applications, and submitting annual reports.

  • Introduced Bill No. 63-26, which includes repeal of the personal property tax assessment reduction.

Restrictions & requirementsHide restrictions & requirements10
  • Bill 63-26 establishes a temporary moratorium on actions related to the development of data storage centers in Anne Arundel County. temporary moratorium on actions related to the development of data storage centers

  • Bill 63-26 repeals the personal property tax assessment reduction for qualified data storage centers, removing that tax benefit and potentially increasing operating costs. repealing the personal property tax assessment reduction for qualified data storage centers

  • To qualify for the County personal-property assessment reduction, a data center must have at least $10 million in total investment and create at least 10 qualified positions. at least $10 million of total investment and at least 10 qualified positions

  • The County assessment reduction is limited to 15 taxable years: 100% for the first five years and 50% for years 6 through 15; additional investment or jobs do not restart the term. a 100% reduction in assessment for the first five taxable years and a 50% reduction in assessment for years 6 through 15

  • An application or renewal for the County assessment reduction must be filed by April 15 before the taxable year; a late filing is disallowed for that year and treated as an application for the following year. filed no later than April 15 and disallowed for the tax year being applied for

  • The County application requires supporting documentation, including the State personal-property tax return, listings of qualifying property and positions, investment documentation, and certification of the investment and qualified positions. provide a copy of the personal property tax return and certification ... as to the amount of the investment and the number of qualified positions

  • The County reduction is not automatic: the Office of Finance and the Anne Arundel County Economic Development Corporation must review and approve or reject each submitted application. reviewed and approved or rejected

  • The County reduction terminates if the required investment or number of qualified positions is no longer maintained, or if the data center stops doing business in the County. the required investment is no longer met or the qualified data center is no longer doing business in the County

  • For the referenced State sales-and-use-tax exemption, a data center must invest at least $2 million in qualified personal property in a Tier I area or $5 million elsewhere and create at least five qualified positions within three years after applying. invested at least $2,000,000 and created at least five qualified positions

  • The State sales-and-use-tax exemption requires an application and annual eligibility certification; certificates generally cannot be renewed for more than 10 consecutive years, or 20 years if the investment reaches $250 million. must be renewed each year and may not be renewed for more than 10 consecutive years

Benefits & exceptionsHide benefits & exceptions6
  • Qualified data centers with at least $10 million in total investment and at least 10 qualified positions may receive a County personal-property assessment reduction for 15 taxable years: 100% for the first five years and 50% for years 6 through 15.

  • The tax-assessment reduction is available through an application and renewal process administered by the County Office of Finance and the Anne Arundel County Economic Development Corporation. Applications must generally be filed by April 15 before the relevant taxable year; a late filing is deferred to the following taxable year rather than permanently rejected.

  • The assessment-reduction term begins in the first tax year for which the application is approved, and additional investment or additional qualified positions do not restart the 15-year period. The reduction ends if the required investment or positions are no longer maintained, or if the center stops doing business in the County.

  • Bill 63-26, as amended, provides for grandfathering certain data storage centers, which can protect eligible existing facilities from losing their status under the amended zoning rules.

  • Bill 63-26, as amended, removes certain parking requirements for data storage centers, reducing a development requirement for covered facilities.

  • Bill 63-26, as amended, removes the conditional-use requirements for certain data storage centers, making the approval process easier for covered facilities.

Sources

future law · County measure
Restricts data-center development by suspending most new applications until January 31, 2028, removing data centers as allowed uses in several zoning districts, ending a property-tax assessment reduction, and requiring a work group to recommend future rules.Maryland Bill 63-26 (2026)

What this means

The measure pauses new data-center applications until January 31, 2028, at the latest, though some previously filed projects and phases next to existing centers can proceed (new applications are not accepted during the effective period). It also removes data centers from several zoning districts, making new development substantially harder; existing operations are not directly prohibited.

Timing

Ends
the earlier of 2028-01-31 or the effective date of legislation based on the Work Group's recommendations

During the Effective Period, the County may not accept new applications for proposed data storage center development. Applications filed before the Effective Period, associated applications, and future phases of existing data storage centers may proceed. The moratorium and related ordinance provisions end at the stated earlier event.

People behind it

  • Identified as the introducer of Bill No. 63-26.

  • Proposed and passed the measure.

  • Administrative Officer who issued the bill by order, presented it to the County Executive, and certified the official copy.

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  • County Executive who approved and enacted the measure.

Restrictions & requirementsHide restrictions & requirements6
  • During the Effective Period, the County may not accept any new application of any type for a proposed data storage center. The Effective Period runs from the ordinance’s effective date until the earlier of January 31, 2028, or the effective date of comprehensive legislation based on the Work Group’s recommendations. Exceptions allow certain plans filed before the Effective Period, related applications, and future phases of existing centers on adjacent or adjoining properties to proceed. No new applications during the Effective Period

  • Data storage centers are removed as conditional uses in the C2 and C3 commercial districts within the BWI/Fort Meade Growth Area, so new centers are no longer allowed there under that zoning pathway. Data storage center in the BWI/Fort Meade Growth Area

  • Data storage centers are removed as permitted uses in the W1, W2, and W3 industrial districts. Data storage center

  • Data storage centers are removed as a permitted use in the MXD-S mixed use district. Data storage centers

  • Data storage centers are removed as a permitted use in the Odenton Town Center OTC-I district. Data storage centers

  • The ordinance repeals the personal property tax assessment reduction for qualified data storage centers, removing that tax benefit and potentially increasing operating or ownership costs. Repealing the personal property tax assessment reduction

Benefits & exceptionsHide benefits & exceptions3
  • Removes the specific minimum parking requirement for data storage centers, which had required one space per 1,000 square feet for the first 5,000 square feet and one space per additional 5,000 square feet.

  • Grandfathers applications for a data storage center that were pending before the ordinance’s effective date: those applications are governed by the prior law. Plans filed before the moratorium begins, related applications submitted afterward, and future phases of an existing data center on adjacent or adjoining properties may also proceed during the moratorium.

  • Allows lawfully existing uses in mixed-use districts that became prohibited on February 2, 2025, and in the Odenton Town Center that became prohibited on March 29, 2024, to continue operating, provided they do not cease operation for the applicable 36-month or 12-month period.

Sources

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