Smart Path Forward for Data Centers in Charles County

Posted by: Economic Development Team on Tuesday, January 6, 2026

As Charles County weighs a zoning text amendment (ZTA) that would allow data centers in carefully selected and limited zones, it is understandable that residents have questions and concerns. Energy use, noise, air emissions, and water consumption are all legitimate issues that deserve clear and transparent answers.

For several years, Charles County staff have been tracking the growth of the data center industry and studying recent projects in nearby jurisdictions. This work has included researching industry trends, understanding potential community impacts, and learning from local governments that have already experienced data center development. The proposed changes to our zoning regulations build on these lessons learned and establish a set of standards to guide the responsible consideration of data centers.

It is important to note that the Economic Development Department (EDD) is not a regulatory agency. EDD does not approve zoning, issue permits, regulate utilities, or oversee environmental compliance. Instead, EDD’s role is to monitor emerging industries, evaluate potential economic impacts, share research with policymakers, and support informed decision-making as the County considers new opportunities. All regulatory authority related to land use, environmental protection, utilities, and permitting rests with the appropriate County, State, and regional agencies.

The proposed Zoning Text Amendment (ZTA) itself is a planning and policy tool designed to ensure that, if data centers are considered in Charles County, they are evaluated under modern standards that reflect today’s technology, infrastructure needs, and community expectations. The goal is thoughtful development—on our terms—with strong environmental safeguards that protect residents, natural resources, and quality of life, while allowing the County to consider economic opportunity.

Power Availability Is the Primary Driver for Data Center Site Selection

While zoning is important, the most critical factor in data center site selection is access to sufficient power. Although much of the recent development has occurred in Northern Virginia, increased demand—largely driven by artificial intelligence (AI)—has led developers to consider new markets such as Maryland. If power is not readily available, both in proximity and within a reasonable timeframe, developers will pursue other jurisdictions.

Electric generation and distribution are regulated at the State and regional level and are outside of Charles County’s direct regulatory authority. In Southern Maryland, data center developers must coordinate with and receive approval from the local electric utility and energy providers before any project can move forward. These entities require developers to complete a comprehensive load study to determine whether the electric grid can support additional demand.

These studies:

  • Are paid for entirely by developers (often costing up to $1 million) and typically take six to nine months to complete
  • Require developers to bear the full cost of any necessary system upgrades
  • Encourage the use of renewable energy sources and on-site generation

These capacity studies are conducted outside of Charles County’s regulatory framework. Simply put, data centers cannot be built unless sufficient power capacity already exists or is funded by the developer.

Data Centers Are Quiet Neighbors—When Properly Regulated

A common concern regarding data centers is noise from generators and cooling systems. Data centers must have backup power to maintain continuous operations during power outages, and servers generate significant heat that requires cooling. However, modern data centers rarely operate generators except for brief, periodic testing or during infrequent power disruptions, which typically last only a few hours.

To address potential noise impacts, the ZTA would require:

  • Compliance with strict noise limits, including pre-development sound testing and ongoing testing every two years
  • Large setbacks—400 feet (more than the length of a football field)—and buffers from residential areas and other sensitive uses
  • Sound-reducing site design and construction techniques

Air Quality Protections Are Built In Through State Regulations

Backup generators can be a source of emissions, but they must meet stringent Maryland Department of the Environment (MDE) standards.

  • All data center developments in Maryland must obtain an Air Quality Permit, which includes emissions analysis, mitigation requirements, and public hearings
  • Air Quality Permits prohibit emissions that extend beyond the property line in a manner that creates a nuisance or air pollution
  • Cleaner backup power technologies are encouraged
  • Developers must demonstrate compliance before any Charles County land development plans are approved

Water Use Is Carefully Managed Through Modern Design Standards

Data centers can require water for cooling, but modern technologies and alternative strategies can significantly reduce water usage. As water demand has affected communities with older data centers, many newer facilities now incorporate air-cooled or closed-loop cooling systems. Additionally, Charles County has operated with an excess of treated non-potable water that is generated from existing residential and commercial properties. 

Treated non-potable water is water that has undergone a process to make it safe for specific non-drinking uses, such as irrigation, industrial applications and toilet flushing.  Consistent with the County’s Comprehensive Plan for Water Resource Elements, this treated non-potable water is to be repurposed to support coolant for industrial uses or irrigation for agriculture and vegetation, further diverting Potomac River discharge and preserving potable water.

To protect Charles County’s potable water resources, the ZTA would require:

  • Prioritization of non-potable water for cooling purposes
  • Limits on the use of potable water for cooling

What the ZTA Does—and What It Does Not Do

It is important to understand what the proposed Zoning Text Amendment (ZTA) is—and what it is not. The ZTA establishes County policy by identifying where data centers may be considered and setting baseline performance and environmental standards. It does not approve any specific data center project, site plan, or development proposal.

Many of the specific concerns raised by residents—such as site design, building height and layout, noise mitigation, traffic impacts, water usage, air quality, and operational details—are addressed later through the County’s development review and permitting process. That process includes detailed technical studies, review by multiple County and State agencies, and, where required, opportunities for public input.

This two-step approach ensures transparency and accountability. The ZTA creates the framework and guardrails, while the development review process evaluates the details of any proposed project on a site-specific basis. By updating zoning policy first, Charles County ensures that any future data center proposal is reviewed under modern, clearly defined standards rather than outdated rules.

The Economic Benefits Are Real—and Significant

Data centers generate substantial tax revenue, create high-paying jobs, and support infrastructure upgrades that can benefit the broader community. Across the country, data center operators have also demonstrated strong community engagement through workforce development, STEM education initiatives, and local investment.

While EDD does not regulate development, part of its role is to evaluate potential economic outcomes and share those findings with County leadership and the public.

A data center campus in Charles County could:

  • Create thousands of construction jobs for electricians, plumbers, steamfitters, and carpenters who currently commute outside the County
  • Create hundreds of permanent jobs for data engineers, electricians, facility managers, and security personnel
  • Generate millions of dollars in local and State recordation, property, and income tax revenue
  • Drive direct and indirect economic activity through local spending and wages
  • Serve as an anchor for the continued growth of an information technology ecosystem in Charles County

A Thoughtful ZTA That Puts the Community First

Without updated zoning standards, data center development could occur under outdated rules, without clear expectations or consistent safeguards. With the ZTA in place, the County maintains strong control through defined performance standards, environmental protections, and a rigorous development review process.

Charles County can thoughtfully consider emerging industries while protecting residents, natural resources, and quality of life. This proposed ZTA reflects a balanced, forward-looking approach and sets a responsible path for the future.

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