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Regbase

The Data Center Divide

Montgomery County

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

Strongly Anti-Data Center Policies

Montgomery County zoning prohibits defined data centers in all county zones, with exclusions and a transition for permits already issued. Separate temporary measures delay covered construction permits for 18 months and data-center permit applications for six months, possibly extended.

current law · County measure
Bans defined data centers in all county zones from August 17, 2026; the earlier conditional-use draft was replaced, and the 18-month permit moratorium belongs to a separate bill.Montgomery County ZTA 26-01 / Ordinance 20-35 (2026)

What this means

The enacted zoning amendment prohibits all facilities meeting its data-center definition in every county zone, subject to specific exclusions and a transition for previously issued building permits. The separate permit moratorium is not counted as a provision of this ordinance.

People behind it

  • Lead sponsor of ZTA 26-01; announced and introduced the measure as Council President.

  • Lead sponsor of ZTA 26-01; announced and introduced the measure as Council Vice President.

  • Lead sponsor of ZTA 26-01; announced and introduced the measure as a Councilmember.

Restrictions & requirementsHide restrictions & requirements1

  • Data centers meeting the actual or projected aggregate monthly electricity-demand threshold of at least 25 MW are prohibited in all county zones. The final ordinance supersedes the earlier conditional-use siting proposal.

Benefits & exceptionsHide benefits & exceptions2

  • The definition excludes facilities primarily used for manufacturing, quantum-computing research, biomedical research, or medical care, and qualifying higher-education institutions.

  • The new prohibition does not apply to an application that received a building permit before August 17, 2026.

Sources

Specific to Montgomery County only.

current law · County measure
Prohibits Montgomery County from accepting, reviewing, or issuing building or grading permits for data centers with an electricity demand of at least 25 megawatts for 18 months.Montgomery County Bill 19-26E (2026)

What this means

The enacted measure temporarily stops acceptance, review, or issuance of covered building and grading permits for 18 months, significantly delaying new covered projects. It is separate from the permanent zoning prohibition and does not itself ban existing facilities from operating.

Timing

Ends
Feb 10, 2028

Bill 19-26E is an 18-month permit moratorium effective August 10, 2026, expiring February 10, 2028. It is separate from the zoning prohibition effective August 17, 2026.

People behind it

  • Lead sponsor of Expedited Bill 19-26 and proposer of the initial six-month moratorium.

  • Co-proposer of the two-year moratorium introduced in May.

  • Co-proposer of the two-year moratorium introduced in May.

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  • One of the leaders of ZTA 26-01, the related data-center zoning measure.

  • One of the leaders of ZTA 26-01, the related data-center zoning measure.

  • One of the leaders of ZTA 26-01, the related data-center zoning measure.

  • County department subject to the prohibition on accepting, reviewing, or issuing building or grading permits for covered data centers.

Restrictions & requirementsHide restrictions & requirements4

  • An 18-month moratorium prohibits the Department of Permitting Services from accepting, reviewing, or issuing building or grading permits for data centers during the moratorium period.

  • The moratorium applies to data-center conditional-use applications filed before or after the Act takes effect, applications still under regulatory review, and applications approved by the Office of Zoning and Administrative Hearings when a permit has not yet been issued.

  • The moratorium covers a data center only when a building or group of buildings has, or is projected to have, an aggregate monthly electricity demand of at least 25 megawatts and is used for computer or network systems, storage equipment, or servers; associated power, fuel-storage, energy-storage, electrical, cooling, and heat-dissipation infrastructure is included.

  • The zoning measure prohibits hyperscale data centers in Montgomery County at this time.

Benefits & exceptionsHide benefits & exceptions3

  • The moratorium applies only to a building or group of buildings with an actual or projected aggregate monthly electricity demand of at least 25 megawatts, so smaller facilities are outside this measure’s definition of a data center. at least 25 megawatts (MW)

  • Facilities used primarily for manufacturing, quantum computing research, biomedical research, or medical care are excluded from the definition of a data center and therefore are not subject to this moratorium. Approved Maryland institutions of higher education are also excluded. does not include a facility used primarily for manufacturing

  • The moratorium is temporary and expires 18 months after its effective date, after which it has no further legal effect. 18 months after its effective date

Sources

current law · County measure
Prohibits Montgomery County from accepting, reviewing, or issuing building or grading permits for data centers for 18 months.Montgomery County Executive Order on Data Center Permitting Moratorium (2026)

What this means

The order temporarily blocks acceptance, consideration, and processing of data-center permit applications, delaying permit-dependent development. Its term is six months or earlier rescission, with a possible six-month extension.

Timing

Ends
Six months from June 12, 2026, or earlier rescission; subject to further executive order

The order expires at the earlier of six months from its effective date or rescission, and may be extended by further executive order for one additional six-month period. Operative expiration and extension clauses. The 18-month sunset of Bill 19-26E does not describe this order.

People behind it

  • County Executive who signs Executive Order 109-26.

  • Department directed to pause covered permit applications.

Restrictions & requirementsHide restrictions & requirements2

  • DPS must refrain from accepting, considering, and processing any permit application related to a Data Center.

  • The order defines Data Center by the primary use of buildings for specified digital-data infrastructure and expressly includes qualifying uses proposed by an applicant for a Cable Communications System. The 25-MW threshold and statutory exclusions in Bill 19-26E are not provisions of this order.

Benefits & exceptionsHide benefits & exceptions1

  • The pause expires six months from the effective date or upon earlier rescission. It is not a permanent prohibition, although a further executive order may extend it for six months.

Sources

pending · County measure
Would prohibit Montgomery County from issuing building permits for data centers for two years, including applications not yet approved when the bill takes effect.Montgomery County Bill 24-26E (2026)

What this means

If enacted as introduced, the measure would block building permits for data centers for two years, making new construction and permit-dependent expansion substantially harder. It would not ban the operation of existing data centers, and the ban would expire after two years.

Timing

Ends
2 years after its effective date

Expedited Bill 24-26 prohibits the Department of Permitting Services from issuing building permits for data centers and sunsets two years after the Act becomes effective. The bill applies to permit applications not approved by the effective date. The later 18-month compromise was advanced under Expedited Bill 19-26, not enacted Bill 24-26.

People behind it

  • Lead sponsor of Expedited Bill 24-26, which proposed a two-year moratorium on data-center building permits.

  • Co-sponsor of Expedited Bill 24-26.

  • Introduced Expedited Bill 19-26, the bill later amended to establish the 18-month moratorium.

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  • Legislative body responsible for considering and approving the moratorium legislation.

  • County department directed not to issue building permits for data centers during the moratorium.

Restrictions & requirementsHide restrictions & requirements3

  • For the duration of the moratorium, the Department of Permitting Services may not issue a building permit for a data center. The Department must not issue a building permit for a data center.

  • The permit prohibition applies immediately when the Act becomes law and covers any building permit application that has not been approved by that effective date. This Act applies to any building permit application that has not been approved.

  • The moratorium expires two years after the Act’s effective date, after which it has no further legal effect. This Act must expire 2 years after its effective date.

Benefits & exceptionsHide benefits & exceptions2

  • The moratorium expires two years after the Act takes effect, so the restriction on issuing data-center building permits is temporary rather than permanent.

  • The moratorium applies only to building-permit applications that have not been approved by the Act’s effective date; applications approved beforehand are not covered by the prohibition.

Sources

Specific to Montgomery County only.

pending · County measure
Proposed creating a temporary task force to study data centers’ impacts and recommend possible policy and zoning changes, but the committees voted against the bill.Montgomery County Bill 4-26 (2026)

What this means

The bill would create a temporary task force to study data centers and recommend possible policy or zoning changes, but it would not itself add rules or pause applications (no new regulatory requirements). That means it would have little direct effect on building, expanding, or operating data centers, though later recommendations could lead to changes.

People behind it

  • Lead sponsor who proposed and introduced Bill 4-26

Sources

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