In a significant move to address the growing influence of the data center industry in Maryland, the state legislature has introduced Senate Bill 116. Proposed on March 13, 2025, this bill aims to conduct a comprehensive assessment of the energy and economic impacts associated with data centers, which have become increasingly prevalent in the digital age.

The bill mandates the Maryland Energy Administration to evaluate the energy requirements of data centers and their potential effects on the state's energy demand and supply. This includes an analysis of how these facilities might influence future energy infrastructure needs and the costs borne by ratepayers. Additionally, the bill seeks to understand how the data center industry aligns with Maryland's commitments to reduce greenhouse gas emissions and achieve clean energy goals.

Moreover, the University of Maryland School of Business is tasked with assessing the economic and fiscal implications of data centers, focusing on their impact on state and local revenues, expenditures, and job creation during both construction and operation phases. This dual approach highlights the bill's intent to balance economic growth with environmental sustainability.

The Department of Legislative Services will coordinate the preparation of a final report synthesizing these assessments, which is due by September 1, 2026. This collaborative effort will involve various state agencies, ensuring a comprehensive analysis of the data center industry's multifaceted impacts.

While the bill has garnered support for its proactive stance on energy and economic evaluation, it may face scrutiny from stakeholders concerned about the rapid expansion of data centers and their environmental footprint. Critics argue that without stringent regulations, the growth of this industry could undermine Maryland's clean energy objectives.

Senate Bill 116 is set to take effect on July 1, 2025, and will remain in force for two years, after which it will automatically expire unless further legislative action is taken. As Maryland navigates the complexities of technological advancement and environmental responsibility, the outcomes of this bill could shape the state's energy landscape and economic future significantly. The anticipated report will provide crucial insights that may inform future policies and regulations surrounding the data center industry.