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FEDERALSBURG — At their respective municipal government meetings held on the evening of August 3, officials from Federalsburg and Ridgely discussed the potential negative impacts of large-scale data center development and passed moratoriums on new applications for data center projects within each of the towns’ incorporated limits. These moratoriums, similar to the one recently passed by the Caroline County Commissioners, are intended to give local leaders time to study the issue and determine what regulations may be appropriate moving forward.
After a data center was proposed in Federalsburg, residents and local officials spoke up in opposition to the idea, and the Caroline County Commissioners adopted a one-year moratorium on data center applications in the county's unincorporated areas. But because municipalities maintain their own zoning authority, town officials said individual action was necessary to ensure incorporated areas were also protected. While both Ridgely and Federalsburg each decided to pause future applications, these moratoriums do not apply to the original potential data center, more formally known as Fieldstone Technology Center.
In Ridgely, Commissioners unanimously adopted a one-year moratorium on the processing of applications for data centers within town limits. Commissioner Brad Sears said that demand for data center space is expected to grow significantly over the coming years, and he pointed out that the issue extends beyond any single municipality.
“This is an immensely complex topic involving environmental considerations, and unfortunately, they do not stop at Ridgely's corporate boundaries,” he said, “if Ridgely adopts a very strict set of standards, and another town a few miles away doesn't, then any potential data center builder is going to go to the less restrictive area. The challenge, though, is that that less restrictive area is going to affect the same aquifer from which we draw water…Similarly, they'll go to the same electrical substations. Coordination among all of the incorporated municipalities and the county is, in my opinion, vital.”
Sears also noted that Ridgely's utility systems were designed to accommodate residential growth and smaller-scale commercial development, but a single large data center could use a significant amount of the existing infrastructure’s capacity. To help guide the process, Sears said he will work to create a comprehensive program management plan outlining coordination with other government agencies. He hopes to have this plan prepared by April 2027, before the one-year moratorium expires.
In Federalsburg, Councilmembers spent considerably more time debating not only the need for a moratorium, but also how long it should remain in place and whether the town should ultimately prohibit data centers altogether. The proposed resolution initially included a 10-year placeholder for Council discussion, though the Council was cautioned that courts generally require moratoriums to be a “reasonable” length.
Councilmembers also reviewed a letter submitted earlier that afternoon by the sponsor of the proposed Fieldstone Technology Center, Wright Road LLC. In the letter, Wright Road LLC requested that the town delay action on the moratorium until 90 days after the anticipated release of a state-led data center report. This request drew scrutiny from residents and Councilmembers alike.
Councilmember Brandy James voiced several of her concerns about the letter, including the timing of its release. “He's asking the town to delay the moratorium until ninety days after the state report is released, but that does not guarantee when it will actually be released to the public. This means the requested delay has no definite end date,” she said. Additionally, “the state report examines statewide environmental, energy, and economic impacts. It's not going to answer all the Federalsburg-specific questions.”
“The letter doesn't explain why the town cannot adopt the moratorium now and reconsider it after reviewing the state report. Adopting the moratorium would preserve the current situation while the town gathers information and develops appropriate protections,” Councilmember James finished.
The Council’s conversation then shifted toward the length of the proposed moratorium. Some argued that five or even 10 years would provide greater protection, while others acknowledged that courts may not view such lengthy restrictions as reasonable and technological advancement may outpace that timeframe.
Throughout the meeting, multiple Councilmembers made clear that they ultimately favored prohibiting data centers within town limits rather than simply regulating them.
"Just ban it,” Councilmember James said. The comment was followed by applause from the audience. Councilmember Ian Ferguson agreed and added that he’d like to see the topic put up for a public vote on November’s election day ballots, though the Council and residents pointed out issues with only having in-town residents vote on such a far-reaching issue.
The Federalsburg Town Council eventually passed Resolution 2026-01, establishing a three-year moratorium on data center applications. Councilmembers also directed the town’s attorney to prepare an ordinance banning data centers to be introduced at the Council's September meeting.
