BALTIMORE — A Baltimore County staff report recommends some of Maryland’s toughest regulations for data centers, giving county lawmakers a blueprint they’ll consider before deciding later this year whether to lift or extend the current moratorium.

The recommendations, released this week, stop short of calling for an extension of the moratorium, which is set to end January 1, 2027. Instead, the report concludes that, if the moratorium is lifted, approvals “should be conditional, rather than by-right,” with facilities limited to industrial areas and kept away from residential neighborhoods and agricultural land, according to the county’s data center report.

The recommendations now head to the Baltimore County Planning Board and County Council, which will ultimately decide whether to adopt new zoning rules, extend the moratorium or pursue another course later this year.

“There’s a lot to digest here, not just where it’s located,” Baltimore County Councilman David Marks said. “I want residents to be confident this will not be a rushed process. This is probably one of the most important decisions we’ll make as a county.”

With so much to review, Marks said he supports extending the current moratorium. He also said county leaders should see what action the Maryland General Assembly takes before making a final decision.

His concerns were echoed by fellow Republican and County Councilman Nino Mangione, who released a statement saying there “are too many unanswered questions surrounding the construction of data centers.”

“I think the smartest approach is to extend the moratorium,” Mangione said. “I want to ensure we have all the relevant information and meaningful community input before moving forward.”

Councilman Julian Jones, the Democratic nominee for county executive, said through spokesman Luca Amayo that he is still reviewing the report.

“We plan to engage with the question of data centers more substantively as part of his energy plan if he is elected [county executive] as promised on the campaign, and we are reviewing the planning board’s recommendations to see where they can be integrated,” Amayo said.

The report acknowledges data centers have become essential infrastructure powering cloud computing, streaming services and AI applications. But county officials conclude that economic benefits must be weighed against mounting concerns over electricity demand, water consumption, greenhouse gas emissions, noise and community effects.

A data center could require around 500,000 gallons of water daily, the report found. The study also found that it would likely drive up the electric bill for county residents.

Among its recommendations, the draft document suggests mandating 750-foot setbacks from homes for data centers and 500-foot setbacks from schools, parks and daycare.

The report suggests requiring extensive noise, vibration, water use and wastewater studies before and after construction, as well as requiring developers to negotiate agreements addressing infrastructure effects and community benefits.

Much of the report focuses on electricity demand.

County officials cite PJM — the regional grid operator serving 13 states and the District of Columbia — which has repeatedly warned that exploding demand from artificial intelligence and hyperscale data centers is outpacing the construction of new power generation.

The report notes PJM found data center growth was the primary driver behind recent capacity shortages and rising electricity prices, contributing to more than $6.5 billion in higher auction costs in the latest capacity auction and more than $23 billion over the last three auctions. Those increases ultimately affect customers’ electric bills.

Adam Keech, PJM’s senior vice president for Market Services, echoed those concerns in a June 25 letter posted on his company’s website.

“Electricity demand is growing faster than new generation can be built to supply it,” Keech wrote. “The primary driver of that growth is data centers. New data center facilities and expansions of existing sites can be developed quickly, up to two to three times faster than many of the electricity generation technologies that are necessary to serve them.”

Keech added that tightening balance of supply versus demand “has contributed to higher capacity prices and raised concerns about the long-term ability of the system to deliver reliable service on a 24/7 basis.”

PJM projects roughly 32 gigawatts of additional peak electricity demand by 2030, with more than half tied to data centers.

The county’s analysis found perhaps the biggest policy tradeoff is revenue versus jobs.

Data centers generate significantly more property tax revenue per acre than warehouses or manufacturing facilities because of their expensive buildings and constantly refreshed computer equipment. According to the report, data centers produce an estimated $171,244 in annual taxes per acre, compared with about $82,141 for manufacturing and $35,377 for warehouses.

But they create far fewer permanent jobs.

The report estimates data centers average about 0.5 jobs per acre, compared with 13 jobs per acre for warehouses and 17 jobs per acre for manufacturing. Construction can create roughly 1,000 union jobs on large projects, but long-term staffing typically drops to only a few dozen employees.

“Data centers generate significant fiscal benefits but limited employment benefits,” according to the county’s data center report. “Fundamental tradeoff: data centers are strong revenue generators but weak long-term job creators.”

The Baltimore County Planning Board is set to hold a public hearing on the report Sept. 3.

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