A bill requiring a study on the grid impact of data centers in Maryland passed the state’s House of Representatives on February 14.

House Bill 270, the Data Center Impact Analysis and Report, calls for state agencies to conduct a thorough study, examining factors like energy consumption, water usage, job creation and potential tax revenues linked to data centers. The goal is to have a comprehensive report ready for the General Assembly by September 1, 2026.

After the bill passed the House 125-8 on February 14, bill author Democrat Del. Brian Crosby told NPM the piece of legislation was brought on by activity in surrounding markets.

“All we’re trying to do is see the actual impacts of putting data centers in Maryland because Virginia is doing it, and it is causing quite a stir in our state,” he said.

Dominion Energy, Maryland’s neighbor in Virginia, announced it expects to connect 15 more data centers in 2025 and is in the early stages of connecting over 26 GW of data center demand.

Discussions on the House floor on February 14 showed supporters of HB270 believe that as the need for data storage and processing grows, it’s essential to weigh both the benefits and challenges these centers bring. They argue that having detailed insights will result in informed decisions about future data center developments and infrastructure.

Meanwhile, critics of the legislation said they are worried that this level of scrutiny might create regulatory hurdles, potentially discouraging tech companies from setting up or expanding data centers in Maryland.

Del. David Fraser-Hidalgo told NPM that the bill received bipartisan support on the House floor on Friday, despite concerns about the fiscal note attached to the bill.

He added that previous legislation encouraging developments in battery energy storage systems (BESS) has been slow to yield results due to PJM Interconnection’s stalled queue.

The legislation comes as many states have seen an uptick in demand due to data centers and the electrification of the grid. The last PJM Capacity Auction yielded record highs, and prices jumped highest for the Baltimore Gas and Electric territory. PJM pushed back the date of its next auction to buy time to address the high results and reform Transition Cycle 2.

If passed and signed by the governor, the bill will take effect on July 1, 2025, and will automatically expire on June 30, 2027, providing a two-year window for this comprehensive data center impact study.

*This story was originally published exclusively for NPM US subscribers.

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