With the 2024 Legislative Session rapidly approaching, MACo is profiling some major issues that stand to gather attention in the General Assembly.
As the information economy continues to grow, data centers are increasingly seen as critical infrastructure. Virginia has been the national champion of encouraging data center development, working to bring several of the nation's critical telecommunications points to the state. Maryland's state and local governments are starting to see the value of data centers, and legislation to help lure them across the Potomac is all but certain.
According to the issue papers:
Data centers are large buildings that house computer systems and associated components. The computer systems are used to facilitate Internet use and various technologies, such as 5G cellular technology, artificial intelligence, streaming content on mobile devices, cloud storage, online gaming, and video conferencing. As Internet use continues to increase and technologies advance, demand for data centers will also increase. While data centers have benefits, including job creation and boosts to the local economy, they also have prompted concerns relating to environmental, land use, and energy consumption impacts. These concerns have been on display with the proposed Quantum Frederick data center campus in Frederick County.
The Quantum Frederick project in Frederick County has proven to be the test case in bringing big data to Maryland, but this is a major issue of all counties within the Washington D.C. metro region.
Quantum Frederick Data Center
In June 2021, Quantum Loophole, Inc. acquired over 2,100 acres of land near Adamstown in Frederick County for the development of Quantum Frederick, a first-of-its kind "master-planned data center campus" that Quantum Loophole envisions as a gigawatt-scale technology hub that will offer city-scale infrastructure for hyperscale, colocation, and purpose-built data center developers. Quantum Frederick will be connected to Data Center Alley in Northern Virginia through an underground hyperscale fiber network ring referred to as the "QLoop." Proponents of the project point to potential economic benefits, including jobs and tax revenues, and contend that it is being located on the grounds of an abandoned aluminum smelting factory, a prime location for responsible cleanup and redevelopment. However, concerns have been raised by members of the public, advocacy groups, and governmental entities about the impact Quantum Frederick could have on the environment and energy use. . . .
The future of Quantum Frederick is in flux. While ADC's decision to pull out of the project due to PSC's decision may give other potential data center developers pause, Quantum Loophole has indicated that has signed contracts with four different entities. In October 2023, Rowan Digital Infrastructure announced that it is exploring development of a 750,000 square foot data center on the site. In June 2023, Quantum Frederick paused construction at the project site for an analysis of groundwater discharges into Tuscarora Creek. While the Maryland Department of the Environment found no adverse impacts to public health and the environment, the status of construction at the site is unclear. A workgroup has been established in Frederick County to examine existing laws and other issues related to data centers, and an executive order is in place to pause action on piecemeal rezoning requests until the workgroup issues its report.
Read more in the DLS 2024 Issue Papers.
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