Baltimore City Council introduces bill that would put one-year pause on data centers

A new bill before the Baltimore City Council would put a one-year pause on building large data centers in the city. 

These centers have come under fire recently as energy bills continue to skyrocket for many Marylanders.

If the moratorium passes, the council says it will spend this legislative council year looking at not only the impact on BGE bills, but also potential negative health effects and what it would do to neighborhoods. 

City Council says Baltimore should not be the guinea pig for this project.

 "I think it's appropriate and important that we take a timeout, we pay the bills, and their shareholders make bank," said Baltimore City Council President Zeke Cohen. "That is why another data center is not needed."

Concerns with data centers in Baltimore

The potential pause comes after the Maryland Office of the People's Council called for an investigation into a BGE transmission line project at the Baltimore Peninsula. 

Council members say they are concerned that a data center could be built there and that South Baltimore could pay the price.

"I intend to make sure that we not only focus on the infrastructure and the economy, but we also focus on not only just the health of our people now, but also the health of our people later," said Phylicia Porter, a councilwoman who represents South Baltimore.

Other council members are worried about how a large data center project could impact existing neighborhoods and community centers.

"When you bring a huge warehouse in which there are only one or two people who can operate 1000s of machines," said Councilman Mark Conway. "There are no people in those areas. There are no sandwich shops. There are no coffee shops."

State bill introduced to block data centers

Earlier this month, State Senate President Bill Ferguson, alongside Gov. Wes Moore and House Speaker Joseline Peña-Melnyk, introduced an energy bill package in Annapolis to block data centers in the city. 

The energy bill package aims to hold data centers accountable for their impact on the state's electric grid by requiring them to pay for their own energy infrastructure upgrades. 

How could data centers impact energy rates?

Neighbors and the city council say they are worried that data centers in Baltimore City could raise energy rates even higher.

"I think that there are too many of them. I think the BGE costs already are pretty high," Matt Krosche of Hampden tells WJZ.

Baltimore City Council President Zeke Cohen says data centers in Northern Virginia are partially to blame for high energy prices here.

Some Baltimore City neighbors say they worry how data centers could impact their already pricy BGE bills.

"I think it already kind of is, to an extent, just around the area. It's every time something pops up, it kind of increases the rates," Krosche continued.

BGE responds

In a statement, BGE said in part it is committed to requiring large-load customers to pay their fair share for grid upgrades and studying grid impacts for data center projects.

"We are committed to implementing strong guardrails to ensure large energy users, including data centers, pay for the infrastructure needed to support their growth, helping shield residential and small businesses from unfair cost impacts," the statement said.

Here's BGE's full statement:

"Under The Exelon Promise, BGE continues to advance programs and protections designed to help customers manage rising energy costs today, while pursuing lasting reforms that address things that are driving up customer bills."

"We are committed to implementing strong guardrails to ensure large energy users, including data centers, pay for the infrastructure needed to support their growth, helping shield residential and small businesses from unfair cost impacts." 

"This includes:

• Requiring large-load customers to pay their fair share of grid upgrades and provide financial assurances that protect customers from the risk of "phantom" projects or stranded infrastructure costs.
• Conducting feasibility and reliability studies for large-load requests to confirm the grid can support new demand without impacting existing customers and identifying any needed upgrades.
• Working with economic development and real estate partners to pre-screen sites and plan grid readiness, helping reduce uncertainty and improve coordination for responsible growth." 

The council says it will hold an informational hearing about the community impact of data centers soon before a final vote on this measure takes place.