Frederick County Council Approves Data Centers Overlay Bill

Members of the Council also heard testimony about the proposed legislation for the 2026 General Assembly.

Frederick, Md (KM) A data center overlay bill was approved Tuesday night by the Frederick County Council This legislation would restrict where data centers can be located outside of the former Eastalco site in Adamstown.

Voting in favor was Councilman Mason Carter. “By creating the overlay zone, the County Council ensures that the siting of data centers will be guided by clear and consistent standards that prioritize capability with surrounding land uses,” he said.

Councilman Jerry Donald, who represents the Adamstown area, vote against the legislation He says his constituents are against data centers. “What’s the cost of people for their way of life,” Donald asked. “We were talking ‘we need for revenue for this or that.’ But what’s your way of life worth? To me, it’s worth a considerable amount.”

In addition to Councilman Carter, those voting in favor the bill were Council President Brad Young, Council Vice President Kavonte Duckiett, and Council members MC Keegan-Ayer and Renee Knapp. Joining Donald in casting a “no” vote was Councilman Steve McKay.

The legislation is expected to go  into affect later this year after the County Executive signs it.

The Council also heard testimony on three legislative proposals which could go before the 2026 Maryland General Assembly The one that generated the most discussion was a measure to levy a personal property tax on data centers. Speaking in opposition was Kelly Schulz, the CEO of the Maryland Tech Council., She said it could discourage data centers from locating in Frederick County.

“Frederick County will be missing out on the revenues that we need in order to be able to generate all of the good things that we as Frederick County residents want to be able to generate and we cannot pass up this opportunity. I say please do not push forward the tax initiatives for data centers at your upcoming vote,” she said.,

Speaking in favor of the tax was Brett Simmons of Monrovia. He said the County could set the tax rate . “And I understand, that according to Ms Schulz, that this could discourage data centers from coming here,”: he said. “But at the same, at the same time, there’s a price that’s being paid for those residents who live near Eastalco especially with the expansion of that.”

Simmons also said a personal property tax on data centers could take the burden off of residential taxpayers.

Another bill in the Council’s legislative package would let counties set the income requirements for those participating in the state’s Disabled Veterans Property Tax Credit program; , and a second bill would allow fire companies to accept credit cards for games of chance such as bingo.

The Council is expected to vote on whether to move forward with these bills on September 16th.

By Kevin McManus