Bay Journal
Update 4/10: The bill exempting data centers from emissions restrictions and PSC oversight has passed the General Assembly and is on it's way to be signed by the Governor, completing what he has called a top priority. MCA and our partners continue to advocate for balance with this power, farmland and water hungry land use, the economic and environmental impacts of which remain largely unstudied.
Thanks so much to all who took action.
Updates about Data Centers in Frederick County and the proposed Dickerson centers along the Potomac can be found here.
Thanks so much to all who took action.
Updates about Data Centers in Frederick County and the proposed Dickerson centers along the Potomac can be found here.
Join our coalition of local groups in opposition to HB 579/ SB 474. Take 2 minutes to write to the Montgomery County delegation here.
Update (3/30): An amendment to this bill would earmark 15% of all tax revenues that the state would collect from data center operators for the state’s Strategic Energy Investment Fund, which the Maryland Energy Administration uses to fund clean energy and climate programs.
This amendment has been cited as the reason for some environmental groups to drop their opposition.
To our mind, this amendment changes nothing and our coalition is still opposed. Here's Why:
Update (3/30): An amendment to this bill would earmark 15% of all tax revenues that the state would collect from data center operators for the state’s Strategic Energy Investment Fund, which the Maryland Energy Administration uses to fund clean energy and climate programs.
This amendment has been cited as the reason for some environmental groups to drop their opposition.
To our mind, this amendment changes nothing and our coalition is still opposed. Here's Why:
- Giving data centers exemptions from emissions reductions goals if they pay to cover the damage after the fact is not smart climate policy. This bill still allows back up diesel generators of any size, any quantity, any location.
- We understand as well that many of these centers are seeking a tax break, further reducing the impact of this provision.
- The bill removes Public Service Commission oversight from data centers - that is deeply troubling precedent.
- This end run of oversight for a brand new industry is happening while efforts to study data centers and how they fit into Maryland's emissions and water protection goals - SB 861 is languishing in committee.
Background: Data centers are an emerging land use heavily established in Northern Virginia but not yet a common sight in Maryland. The state and local jurisdictions do not currently have a regulatory framework to deal with this novel and intensive land use.
Data Centers use large amounts of (often farm) land to house row after row of computer servers, servers that must be cooled by large amounts of circulated water. What we think of when we save something "to the cloud" is in fact a very large low slung building with the power needs of a large city. The increase in power needs has Virginia contemplating a large grid update that Maryland rate payers will need to chip in for, to the tune of $500 Million.
But what about when the power goes out?
For all the cutting edge technology of data centers, the back up power source of choice has been diesel generators - enough to keep that city-sized power need met. The company Aligned looking to construct data centers in Frederick County had to withdraw their plans when their application to the Public Service Commission for 160 3-megawatt diesel generators required to run continuously in the event of a power outage was denied.
Governor Moore was frustrated by this. From Maryland Matters, "The PSC decision drew a rebuke from Moore after Aligned Data pulled out of the development — even though Moore has appointed three of the five commissioners. And the company in a recent statement warned that the PSC vote “sent a negative — and perhaps fatal — signal to the hoped-for data center industry in Maryland.”
Moore's resulting legislation on this topic, HB 579/ SB474: Critical Infrastructure Streamlining Act seeks to remove the PSCs oversight on backup power generators for data centers.
Data Centers use large amounts of (often farm) land to house row after row of computer servers, servers that must be cooled by large amounts of circulated water. What we think of when we save something "to the cloud" is in fact a very large low slung building with the power needs of a large city. The increase in power needs has Virginia contemplating a large grid update that Maryland rate payers will need to chip in for, to the tune of $500 Million.
But what about when the power goes out?
For all the cutting edge technology of data centers, the back up power source of choice has been diesel generators - enough to keep that city-sized power need met. The company Aligned looking to construct data centers in Frederick County had to withdraw their plans when their application to the Public Service Commission for 160 3-megawatt diesel generators required to run continuously in the event of a power outage was denied.
Governor Moore was frustrated by this. From Maryland Matters, "The PSC decision drew a rebuke from Moore after Aligned Data pulled out of the development — even though Moore has appointed three of the five commissioners. And the company in a recent statement warned that the PSC vote “sent a negative — and perhaps fatal — signal to the hoped-for data center industry in Maryland.”
Moore's resulting legislation on this topic, HB 579/ SB474: Critical Infrastructure Streamlining Act seeks to remove the PSCs oversight on backup power generators for data centers.
MCA signed on with 17 other state and local groups to oppose this bill.
From the opposition letter:
"We are concerned by the bill’s sweeping exemptions. As written, all backup diesel generators, of any size, in any quantity, anywhere in Maryland would be exempt from the Certificate of Public Convenience and Necessity (CPCN) process. The technical expertise and judicial role of the Public Service Commission would have no influence in these potentially massive generator projects."
"We also worry about the precedent that could be set by exempting from the CPCN process
power plant-sized complexes of diesel generators without opportunity for substantive public involvement. This is a significant concern, as for example, just at the Quantum Loophole site in Adamstown, over 1000 generators are expected to provide a total of 2.4 gigawatts of energy. That is enough energy to power 600,000 new homes, roughly two times the number of housing units in Baltimore."
From the opposition letter:
"We are concerned by the bill’s sweeping exemptions. As written, all backup diesel generators, of any size, in any quantity, anywhere in Maryland would be exempt from the Certificate of Public Convenience and Necessity (CPCN) process. The technical expertise and judicial role of the Public Service Commission would have no influence in these potentially massive generator projects."
"We also worry about the precedent that could be set by exempting from the CPCN process
power plant-sized complexes of diesel generators without opportunity for substantive public involvement. This is a significant concern, as for example, just at the Quantum Loophole site in Adamstown, over 1000 generators are expected to provide a total of 2.4 gigawatts of energy. That is enough energy to power 600,000 new homes, roughly two times the number of housing units in Baltimore."
Recommendations: This land use is both entirely novel and has dramatic impacts on land, water, energy and economics. MCA supports the efforts to convert the bill to a study that would:
In addition, MCA supports SB0861-Public Utilities - High-Energy-Use Facilities - Greenhouse Gas Emissions Reductions put forth by Senator Lewis Young and Senator Watson. The bill would require facilities that have high energy use - notably data centers and cryptocurrency mining operations to move toward 100% reduction in emissions by 2040 (5 years after Governor Moore has pledged the state will be using 100% clean energy) with milestone targets between now and then, with compliance monitored by the Public Service Commission. This provision aligns the staggering energy use of data centers with the critical emissions reduction goals of the state and will push innovation.
- Project # diesel generators in next 10 years
- Prepare an environmental analysis.
- Identify the timeline for the availability of greener alternatives.
- Make recommendations for overall clean energy goals.
- Make recommendations for permitting, oversight, and public communications.
- Ascertain energy availability and risk of blackouts.
In addition, MCA supports SB0861-Public Utilities - High-Energy-Use Facilities - Greenhouse Gas Emissions Reductions put forth by Senator Lewis Young and Senator Watson. The bill would require facilities that have high energy use - notably data centers and cryptocurrency mining operations to move toward 100% reduction in emissions by 2040 (5 years after Governor Moore has pledged the state will be using 100% clean energy) with milestone targets between now and then, with compliance monitored by the Public Service Commission. This provision aligns the staggering energy use of data centers with the critical emissions reduction goals of the state and will push innovation.
Press:
Baltimore Sun: Maryland Governor's bill on data centers raises environmental concerns
Frederick News Post: Moore 'disappointed' in PSC's Aligned decision, will work with legislature on data center needs
Multiple Data Centers Proposed at Dickerson Power Plant - Concerns and Recommendations
As Use of A.I. Soars, So Does the Energy and Water It Requires
Baltimore Sun: Maryland Governor's bill on data centers raises environmental concerns
Frederick News Post: Moore 'disappointed' in PSC's Aligned decision, will work with legislature on data center needs
Multiple Data Centers Proposed at Dickerson Power Plant - Concerns and Recommendations
As Use of A.I. Soars, So Does the Energy and Water It Requires
