Data Center Planning and Transparency Act

EXPLANATION: CAPITALS INDICATE MATTER ADDED TO EXISTING LAW.
[Brackets] indicate matter deleted from existing law.
*hb1411*

HOUSE BILL 1411
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By: Delegate Ruth
Introduced and read first time: February 13, 2026
Assigned to: Environment and Transportation

A BILL ENTITLED

AN ACT concerning 1

Data Center Planning and Transparency Act 2

FOR the purpose of requiring an owner or operator of a certain large–scale data center to 3
submit a certain disclosure report to certain State and local agencies and elected 4
officials under certain circumstances; specifying the contents of the disclosure report; 5
requiring the Department of the Environment to publish the disclosure report on its 6
website within a certain period of time ; requiring, on or before a certain date, each 7
local jurisdiction with a certain population of residents to develop and adopt by local 8
law a large –scale data center plan in a certain manner ; requiring certain local 9
jurisdictions to submit the plan to the Department of Planning within a certain 10
period o f time ; requiring the Department of Planning to publish the plan on its 11
website within a certain period of time; requiring certain local jurisdictions to adopt 12
zoning regulations to implement the plan; prohibiting an officer or a unit of State 13
government f rom using any part of an appropriation to provide certain financial 14
assistance or incentives to an owner or operator of a large –scale data center unless 15
certain conditions are met; altering the requirements for qualified data center 16
personal property to be eligible for an exemption from the sales and use tax; and 17
generally relating to data centers. 18

BY adding to 19
Article – Environment 20
Section 19–101 and 19–102 to be under the new title “Title 19. Data Centers” 21
Annotated Code of Maryland 22
(2014 Replacement Volume and 2025 Supplement) 23

BY adding to 24
Article – Land Use 25
Section 1–401(b)(19) and 4–217 26
Annotated Code of Maryland 27
(2012 Volume and 2025 Supplement) 28

2 HOUSE BILL 1411

BY repealing and reenacting, with amendments, 1
Article – Land Use 2
Section 1–401(b)(19) through (32) 3
Annotated Code of Maryland 4
(2012 Volume and 2025 Supplement) 5

BY adding to 6
Article – State Finance and Procurement 7
Section 7–240 8
Annotated Code of Maryland 9
(2021 Replacement Volume and 2025 Supplement) 10

BY repealing and reenacting, without amendments, 11
Article – Tax – General 12
Section 11–239(a)(1) through (3) 13
Annotated Code of Maryland 14
(2022 Replacement Volume and 2025 Supplement) 15

BY repealing and reenacting, with amendments, 16
Article – Tax – General 17
Section 11–239(c) 18
Annotated Code of Maryland 19
(2022 Replacement Volume and 2025 Supplement) 20

SECTION 1. BE IT ENACTED BY THE GENERAL ASSEMBLY OF MARYLAND, 21
That the Laws of Maryland read as follows: 22

Article – Environment 23

TITLE 19. DATA CENTERS. 24

19–101. 25

(A) IN THIS SECTION THE FOLLOWING WORDS HAVE THE MEANINGS 26
INDICATED. 27

(B) “DATA CENTER” HAS THE MEANING STATED IN § 11–239 OF THE TAX – 28
GENERAL ARTICLE. 29

(C) “DISCLOSURE REPORT ” MEANS THE DISCLOSURE REPORT THAT AN 30
OWNER OR OPERATOR OF A PROPOSED , PLANNED, OR APPROVED LARGE –SCALE 31
DATA CENTER IS REQUIRED TO PROVIDE UNDER § 19–102 OF THIS TITLE. 32

(D) “LARGE–SCALE DATA CENTER ” HAS THE MEANING STAT ED IN § 33
4–217 OF THE LAND USE ARTICLE. 34

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(E) “MULTITENANT DATA CENTER” HAS THE MEANING STAT ED IN § 4–217 1
OF THE LAND USE ARTICLE. 2

19–102. 3

(A) (1) AN OWNER OR OPERATOR OF A PROPOSED , PLANNED, OR 4
APPROVED LARGE–SCALE DATA CENTER SHALL SUBMIT A DISCLOSURE REPORT TO: 5

(I) THE DEPARTMENT; 6

(II) THE MARYLAND ENERGY ADMINISTRATION; 7

(III) THE LOCAL APPROVING A UTHORITIES FOR PLANNING, 8
ECONOMIC DEVELOPMENT, PERMITTING, AND ENVIRONMENT, AS APPLICABLE, OF 9
THE LOCAL JURISDICTION IN WHICH THE DATA CENTER WILL BE LOCATED; AND 10

(IV) ANY STATE AND LOCAL ELECTED OFFICIAL REPRESENTING 11
THE AREA IN WHICH THE DATA CENTER WILL BE LOCATED. 12

(2) A DISCLOSURE REPORT SHALL BE SUBMITTED T O THE ENTITIES 13
LISTED IN PARAGRAPH (1) OF THIS SUBSECTION BY THE EARLIER OF TH E 14
FOLLOWING: 15

(I) 60 DAYS BEFORE THE OWNER OR OPERATOR SUBMITS AN 16
APPLICATION FOR ANY GRANT , LOAN, OR OTHER FINANCIAL ASSI STANCE OR 17
INCENTIVE, INCLUDING A TAX INCENTIVE, TO A UNIT OF STATE GOVERNMENT; OR 18

(II) 60 DAYS BEFORE THE OWNER OR OPERATO R SUBMITS AN 19
APPLICATION FOR ANY PERMIT, APPROVAL, OR LICENSE REQUIRED BY FEDERAL, 20
STATE, OR LOCAL LAW TO CONSTRUCT OR OPERATE A LARGE–SCALE DATA CENTER. 21

(B) A DISCLOSURE REPORT SHALL INCLUDE: 22

(1) THE NAME AND ADDRESS OF: 23

(I) THE FACILITY; 24

(II) THE OPERATOR OF THE FACILITY; AND 25

(III) THE OWNER OF T HE LAND , BUILDING, AND COMPUTER 26
EQUIPMENT ASSOCIATED WITH THE FACILITY; 27

(2) A DETAILED DESCRIPTION FOR: 28
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(I) DEMONSTRATING THE NEED FOR THE FACILITY; 1

(II) EXPLAINING THE REASONING FOR TH E LOCATION OF THE 2
FACILITY; AND 3

(III) OUTLINING THE COMMUNI TY BENEFITS THAT WIL L BE 4
PROVIDED BY THE FACILITY; 5

(3) INFORMATION ON WHETHER: 6

(I) THE OWNER OR OPERATOR HAS SIGNED AN 7
INTERCONNECTION AGREEMENT, AND IF SO: 8

1. THE STATUS OF THE FACILITY’S INTERCONNECTION 9
TO A UTILITY SYSTEM OR TRANSMISSION GRID; AND 10

2. WHETHER A LOAD STUDY HAS ALREADY BEEN 11
CONDUCTED; 12

(II) THE FACILITY HAS BEEN PREVIOUSLY PROPOSED AT 13
ANOTHER LOCATION IN THE STATE OR IN ANOTHER STATE; AND 14

(III) THE FACILITY IS A MULTITENANT DATA CENTER; 15

(4) THE TOTAL SQUARE FOOTAGE OF THE FACILITY; 16

(5) THE MEAN AMOUNT OF PR OJECTED DAILY ELECTR ICITY USAGE 17
MEASURED IN MEGAWATTS; 18

(6) THE MEAN AMOUNT OF PR OJECTED ELECTRICITY USAGE PER 19
HOUR DURING PEAK LOA D MEASURED IN MEGAWA TTS AND FREQUENCY OF PEAK 20
LOAD PER WEEK; 21

(7) THE SOURCE OF POWER FOR THE FACILITY , INCLUDING A COPY 22
OF ANY POWER PURCHAS E AGREEMENT FOR SUPPLYING ELECTRICITY TO THE 23
FACILITY WITH AN ESTIMATE ON THE LEVEL OF GREENHO USE GAS EMISS IONS 24
ASSOCIATED WITH THE PROJECTED ELECTRICITY USAGE; 25

(8) ANY A NTICIPATED NEED FOR ADDITIONAL POWER 26
INFRASTRUCTURE, INCLUDING TRANSMISSION LINES AND SUBSTATIONS; 27

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(9) THE NUMBER, SIZE, FUEL SOURCE, AND PROJECTED EMISSI ONS 1
OF ANY BACKUP GENERATORS FOR THE FACILITY; 2

(10) THE TYPE , CAPACITY, AND PROJECTED EMISSI ONS OF ANY 3
ON–SITE GENERATION FOR REGULAR OPERATION; 4

(11) THE T YPE OF COOLING SYSTE M, SOURCES OF WATER , AND 5
ESTIMATED VOLUME OF WATER APPROPRIATION NEEDED, IF APPLICABLE; 6

(12) THE PROJECTED NOISE L EVELS EMITT ED BY THE FACILITY 7
ESTIMATED IN DECIBELS: 8

(I) 1. AT THE FACILITY PROPERTY LINE; AND 9

2. AT PROPERTIES LOCATED WITHIN A 0.25–MILE, 10
0.50–MILE, AND 1.0–MILE RADIUS OF THE FACILITY PROPERTY LINE; AND 11

(II) FOR WHEN THE FACILITY WILL BE OPERATING ALL 12
COOLING AND COMPUTER EQUIPMENT AND REGULAR TESTING OF ALL EMERGENCY 13
GENERATORS AT FULL LOAD; 14

(13) ESTIMATED MILESTONE DATES FOR DESIGN AND CONSTRUCTION; 15

(14) THE NUMBER AND TYPE O F PERMANENT POSTCONS TRUCTION 16
JOBS THE FACILITY WILL PROVIDE; AND 17

(15) ANY STATE, COUNTY, OR L OCAL GRANT, LOAN, OR OTHER 18
FINANCIAL ASSISTANCE OR INCENTIVE, INCLUDING A TAX INCE NTIVE, THE OWNER 19
OR OPERATOR OF THE FACILITY INTENDS TO APPLY FOR. 20

(C) IF THERE ARE SUBSTANTIAL CHANGES TO ANY OF THE ITEMS REQUIRED 21
UNDER SUBSECTION (B) OF THIS SECTION , THE OWNER OR OPERATO R OF THE 22
LARGE–SCALE DATA CENTER SHALL SUBMIT AN AMENDED DISCLOSURE REPORT IN 23
ACCORDANCE WITH THIS SECTION. 24

(D) (1) NEITHER THE DISCLOSURE REPORT NOR ANY OF ITS CONTENT S 25
SHALL BE CONSIDERED PRIVILEGED OR CONFIDENTIAL INFORMATION. 26

(2) WITHIN 30 DAYS AFTER RECEIVING A DISCLOSURE REPORT, THE 27
DEPARTMENT SHALL PUBLISH THE DISCLOSURE REPORT ON ITS WEBSITE. 28

Article – Land Use 29

1–401. 30
6 HOUSE BILL 1411

(b) The following provisions of this division apply to a charter county: 1

(19) § 4–217 (DATA CENTER ZONING); 2

[(19)] (20) Title 4, Subtitle 5 (Accessory Dwelling Units); 3

[(20)] (21) § 5–102(d) (Subdivision regulations – Burial sites); 4

[(21)] (22) § 5–104 (Major subdivision – Review); 5

[(22)] (23) Title 7, Subtitle 1 (Development Mechanisms); 6

[(23)] (24) Title 7, Subtitle 2 (Transfer of Development Rights); 7

[(24)] (25) except in Montgomery County or Prince George’s County, Title 8
7, Subtitle 3 (Development Rights and Responsibilities Agreements); 9

[(25)] (26) Title 7, Subtitle 4 (Inclusionary Zoning); 10

[(26)] (27) Title 7, Subtitle 5 (Housing Expansion and Affordability); 11

[(27)] (28) § 8–401 (Conversion of overhead facilities); 12

[(28)] (29) for Baltimore County only, Title 9, Subtitle 3 (Single –County 13
Provisions – Baltimore County); 14

[(29)] (30) for Frederick County only, Title 9, Subtitle 10 (Single –County 15
Provisions – Frederick County); 16

[(30)] (31) for Howard County onl y, Title 9, Subtitle 13 (Single –County 17
Provisions – Howard County); 18

[(31)] (32) for Talbot County only, Title 9, Subtitle 18 (Single –County 19
Provisions – Talbot County); and 20

[(32)] (33) Title 11, Subtitle 2 (Civil Penalty). 21

4–217. 22

(A) (1) IN THIS SECTION THE FOLLOWING WORDS HAVE THE MEANINGS 23
INDICATED. 24

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

(3) (I) “LARGE–SCALE DATA CENTER ” MEANS A DATA CENTER 3
THAT IS PROJECTED TO HAVE A N AGGREGATE MONTHLY DEMAND OF AT LEAST 20 4
MEGAWATTS. 5

(II) “LARGE–SCALE DATA CENTER” INCLUDES A MULTITENANT 6
DATA CENTER THAT IS PROJECTED TO HAVE AN AGGREGATE MONTHLY DEMAND OF 7
AT LEAST 20 MEGAWATTS. 8

(4) “MULTITENANT DATA CENTER” MEANS A FACILITY THAT LEASES 9
SPACE TO MULTIPLE DATA CENTER OPERATORS AND MAY PR OVIDE SHARED 10
SERVICES INCLUDING POWER, COOLING, AND INTERNET CONNECTIVITY. 11

(5) “PLAN” MEANS THE LARGE–SCALE DATA CENTER PLAN ADOPTED 12
BY A LOCAL JURISDICTION UNDER THIS SECTION. 13

(B) THIS SECTION APPLIES ONLY TO A LOCAL JURISDICTION WITH A 14
POPULATION OF AT LEAST 10,000 RESIDENTS. 15

(C) (1) ON OR BEFORE JUNE 30, 2027, EACH LOCAL JURISDICTION SHALL 16
DEVELOP AND ADOPT BY LOCAL LAW A LARGE –SCALE DATA CENTER PL AN IN 17
ACCORDANCE WITH THIS SECTION. 18

(2) WITHIN 60 DAYS AFTER ADOPTING THE PLAN , THE LOCAL 19
JURISDICTION SHALL SUBMIT THE PLAN TO THE DEPARTMENT OF PLANNING. 20

(D) THE PLAN SHALL: 21

(1) BE CONSISTENT WITH T HE LOCAL JURISDICTION’S SUSTAINABLE 22
GROWTH PRINCIPLES AND COMPREHENSIVE PLAN; 23

(2) INCLUDE POLICIES THAT: 24

(I) PROMOTE SUSTAINABLE DEVELOPMENT AND PROTECT THE 25
ENVIRONMENT; 26

(II) MAINTAIN COMMUNITY CHARACTER; 27

(III) ENSURE A TRANSPARENT AND INCLUSIVE PROCESS; 28

(IV) MAXIMIZE LOCAL ECONOMIC BENEFITS; 29
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(V) PROTECT COMMUNITY AND PUBLIC HEALTH; AND 1

(VI) PROTECT UTILITY RATEPAYERS; AND 2

(3) INCLUDE RECOMMENDATIONS FOR: 3

(I) SITING GUIDELINES , INCLUDING LOCATIONS WHERE 4
LARGE–SCALE DATA CENTER DE VELOPMENT MAY BE DES IRABLE AND LOCATIONS 5
WHERE DEVELOPMENT SHOULD BE RESTRICTED, WITH CONSIDERATION FOR: 6

1. UNDERSERVED AND OVERBURDENED COMMUNITIES; 7

2. AREAS CERTIFIED AS A PRIORITY PRESERVATIO N 8
AREA UNDER § 2–518 OF THE AGRICULTURE ARTICLE; 9

3. AREAS DESIGNATED BY THE RURAL LEGACY BOARD 10
AS A RURAL LEGACY AREA UNDER TITLE 5, SUBTITLE 9A OF THE NATURAL 11
RESOURCES ARTICLE; 12

4. AGRICULTURAL LAND; 13

5. UNDEVELOPED LAND; AND 14

6. PROXIMITY TO SCHOOLS, DAYCARES, PARKS, OR 15
MEDICAL FACILITIES; 16

(II) ENVIRONMENTAL PROTECTION, WITH CONSIDERATION FOR 17
CUMULATIVE IMPACTS; 18

(III) REQUIREMENTS FOR PUB LIC NOTICE THAT PROV IDE AN 19
OPPORTUNITY FOR PUBLIC INPUT MEETING S AND ENSUR E ONGOING PROJECT 20
TRANSPARENCY, INCLUDING REQUIRING AT LEAST T WO PUBLIC INPUT MEETINGS 21
BEFORE ANY LOCAL DEVELOPMENT PLANS OR PERMITS FOR A LARGE–SCALE DATA 22
CENTER ARE APPROVED; 23

(IV) REQUIREMENTS FOR COMMUNITY BENEFITS; 24

(V) CONSIDERATIONS FOR LOCATING ADDITIO NAL POWER 25
SUPPORT INFRASTRUCTU RE THAT MAY BE NEEDED, INCLUDING TRANSMISSION 26
LINES AND SUBSTATIONS; 27

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(VI) CONSIDERATIONS FOR DEVELOPMENT RESTR ICTIONS, 1
INCLUDING SIZE LIMITATIONS; AND 2

(VII) CONSIDERATIONS FOR COUNTY GRANTS , LOANS, AND TAX 3
CREDITS. 4

(E) IN DEVELOPING THE PLAN, THE LOCAL JURISDICTION SHALL HOLD AT 5
LEAST TWO MEETINGS TO SOLICIT PUBLIC INPUT. 6

(F) A LOCAL JURISDICTION SHALL ADOPT: 7

(1) ZONING REGULATIONS TO IMPLEMENT THE PLA N, INCLUDING 8
REGULATIONS GOVERNING WHERE LARGE–SCALE DATA CENTERS WILL BE: 9

(I) PROHIBITED; 10

(II) ALLOWED BY SPECIAL EXCEPTION; AND 11

(III) ALLOWED BY RIGHT, IF APPLICABLE; 12

(2) ANY ZONING OVERLAYS DEEMED NECESSARY TO IMPLEMENT THE 13
PLAN; AND 14

(3) ANY OTHER ZONING REQUIRE MENT OR RESTRICTION DEEMED 15
NECESSARY TO IMPLEMENT THE PLAN. 16

(G) THE DEPARTMENT OF PLANNING: 17

(1) SHALL PUBLISH EACH LARGE–SCALE DATA CENTER PLAN WITHIN 18
30 DAYS AFTER RECEIVING THE PLAN FROM A LOCAL JURISDICTION; AND 19

(2) MAY DEVELOP GUIDANCE , MODEL ORDINANCES , AND OTHER 20
RESOURCES TO ASSIST LOCAL JURISDICTIONS IN PLANNING FOR DATA CENTER 21
DEVELOPMENT. 22

Article – State Finance and Procurement 23

7–240. 24

(A) (1) IN THIS SECTION THE FOLLOWING WORDS HAVE THE MEANINGS 25
INDICATED. 26

10 HOUSE BILL 1411

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

(3) “LARGE–SCALE DATA CENTER ” HAS THE MEANING STAT ED IN § 3
4–217 OF THE LAND USE ARTICLE. 4

(B) AN OFFICER OR A UNIT OF STATE GOVERNMENT MAY NOT USE ANY PART 5
OF AN APPR OPRIATION TO PROVIDE A GRANT , LOAN, OR OTHER FINANCIAL 6
ASSISTANCE OR INCENTIVE TO AN OWNER OR OPERATOR OF A LARGE–SCALE DATA 7
CENTER UNLESS: 8

(1) THE OWNER OR OPERATOR IS IN COMPLIANCE WITH § 19–102 OF 9
THE ENVIRONMENT ARTICLE; AND 10

(2) THE LOCAL JURISDICTION I N WHICH THE LARGE –SCALE DATA 11
CENTER WILL BE LOCATED HAS ADOPTED A LARGE–SCALE DATA CENTER PLAN AND 12
THE ZONING REGULATIONS NECESSARY TO IMPLEMENT THE PLAN, IN ACCORDANCE 13
WITH § 4–217 OF THE LAND USE ARTICLE. 14

Article – Tax – General 15

11–239. 16

(a) (1) In this section the following words have the meanings indicated. 17

(2) “Data center” means a building or group of buildings used to house 18
computer systems, computer storage equipment, and associated infrastructure that 19
businesses or other o rganizations use to organize, process, store, and disseminate large 20
amounts of data. 21

(3) “Department” means the Department of Commerce. 22

(c) (1) To qualify for the sales and use tax exemption under subsection (b) of 23
this section, an individual or a cor poration shall file an application for an exemption 24
certificate with the Department. 25

(2) (I) The application must: 26

[(i)] 1. demonstrate that the applicant intends to meet the 27
requirements of a qualified data center; and 28

[(ii)] 2. include any information the Department requires to 29
evidence the capacity and intention of the applicant to fulfill the commitments set forth in 30
the applicant’s application. 31

HOUSE BILL 1411 11

(II) IN ADDITION TO THE RE QUIREMENTS UNDER 1
SUBPARAGRAPH (I) OF THIS PARAGRAPH , FOR A LARGE –SCALE DATA CENTER , AS 2
DEFINED IN § 4–217 OF THE LAND USE ARTICLE, THE APPLICATION MUST 3
DEMONSTRATE THAT: 4

1. THE APPLICANT IS IN COMPLIANCE WITH § 19–102 OF 5
THE ENVIRONMENT ARTICLE; AND 6

2. THE LOCAL JURISDICTI ON IN WHICH THE 7
LARGE–SCALE DATA CENTER IS LOCATED HAS ADOPTED A LARGE –SCALE DATA 8
CENTER PLAN AND THE ZONING REGULATIONS N ECESSARY TO IMPLEMEN T THE 9
PLAN, IN ACCORDANCE WITH § 4–217 OF THE LAND USE ARTICLE. 10

(3) If, based on the information and supporting documentation provided in 11
the application, the Department determines the applicant is eligible for the sales and use 12
tax exemption under subsection (b) of this section, the Department shall certify the 13
eligibility of the applicant. 14

SECTION 2. AND BE IT FURTHER ENACTED, That this Act shall take effect June 15
1, 2026. 16