Moratorium on Construction of New Data Centers - Co-Location and Generation Contingency

EXPLANATION: CAPITALS INDICATE MATTER ADDED TO EXISTING LAW.
[Brackets] indicate matter deleted from existing law.
*hb0120*

HOUSE BILL 120
N1, C5 EMERGENCY BILL 6lr1328
(PRE–FILED)
By: Delegates Fisher, Chisholm, M. Morgan, and Szeliga
Requested: October 24, 2025
Introduced and read first time: January 14, 2026
Assigned to: Environment and Transportation

A BILL ENTITLED

AN ACT concerning 1

Moratorium on Construction of New Data Centers – Co–Location and 2
Generation Contingency 3

FOR the purpose of prohibiting a person from c onstructing a data center in the State ; 4
prohibiting a unit of State or local government from approving a proposal for the 5
construction of a data center in the State; providing for the termination of this Act if 6
the General Assembly enacts certain legislation regarding the co –location of and 7
power generation for data centers; and generally relating to the construction of data 8
centers in the State. 9

BY adding to 10
Article – Real Property 11
Section 14–134 12
Annotated Code of Maryland 13
(2023 Replacement Volume and 2025 Supplement) 14

BY repealing and reenacting, without amendments, 15
Article – Tax – General 16
Section 11–239(a)(1) and (2) 17
Annotated Code of Maryland 18
(2022 Replacement Volume and 2025 Supplement) 19

SECTION 1. BE IT ENACTED BY THE GENERAL ASSEMBLY OF MARYLAND, 20
That the Laws of Maryland read as follows: 21

Article – Real Property 22

14–134. 23

2 HOUSE BILL 120

(A) IN THIS SECTION , “DATA CENTER ” HAS THE MEANING STAT ED IN § 1
11–239 OF THE TAX – GENERAL ARTICLE. 2

(B) A PERSON MAY NOT CONSTRUCT A DATA CENTER IN THE STATE. 3

(C) A UNIT OF STATE OR LOCAL GOVERN MENT MAY NOT APPROVE A 4
PROPOSAL FOR THE CONSTRUCTION OF A DATA CENTER IN THE STATE. 5

Article – Tax – General 6

11–239. 7

(a) (1) In this section the following words have the meanings indicated. 8

(2) “Data center” means a building or group of buildings used to house 9
computer systems, computer storage equipment, and associated infrastructure that 10
businesses or other organizations use to organize, process, store, and disseminate large 11
amounts of data. 12

SECTION 2. AND BE IT FURTHER ENACTED, That this Act shall be construed to 13
apply only prospectively and may not be applied or interpreted to have any effect on or 14
application to any construction of a data center that has received all required federal, State, 15
and local permits before the effective date of this Act. 16

SECTION 3. AND BE IT FURTHER ENACTED, That this Act, with no further 17
action required by the General Assembly , shall be abrogated and of no further force and 18
effect if the General Assembly enacts legislation that requires: 19

(1) all new data centers to be co–located with a new or existing: 20

(i) natural gas power generation facility; 21

(ii) nuclear power generation facility; or 22

(iii) small module reactor; and 23

(2) the construction at a co–located power generation facility of additional 24
power generation capacity that meets or exceeds the data center’s power needs. 25

SECTION 4. AND BE IT FURTHER ENACTED, That this Act is an emergency 26
measure, is necessary for the immediate preservation of the public health or safety, has 27
been passed by a yea and nay vote supported by three –fifths of all the members elected to 28
each of the two Houses of the General Assembly, and shall take effect from the date it is 29
enacted. 30