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Montgomery County Bans Hyperscale Data Centers and Imposes 18‑Month Moratorium

The council’s action pauses Atmosphere’s 300 MW Dickerson proposal, creating space for state studies to set new rules on water use and grid impacts.

Overview

  • Montgomery County voted Tuesday to extend an earlier pause into an 18‑month moratorium that blocks new permits for projects drawing 25 megawatts or more and enacts a zoning ban on defined hyperscale facilities.
  • The measures directly affect Atmosphere Data Centers’ proposed 300‑megawatt Dickerson campus, which has already challenged the prior six‑month pause and said it is reviewing legal options after the council vote.
  • Local officials cited concerns over large cooling water withdrawals from the Potomac, rising electricity demand that could strain the grid, and potential higher utility bills for residents as reasons for pausing approvals.
  • Neighboring jurisdictions have moved similarly with Prince George’s and Frederick counties adopting pauses and New York issuing a one‑year statewide moratorium that is paired with a yearlong DEC environmental review.
  • State reviews and deadlines now matter most for what happens next, with Maryland due to deliver a study by Sept. 1 and Loudoun County staff due to propose moratorium options by Sept. 15, a sequence that could reshape where future data centers are sited.