Food & Water Watch Statement – Today, the Senate passed the Utility RELIEF Act with provisions that incentivize the buildout of dangerous methane gas and nuclear energy for AI data centers. The bill also calls for a study to determine 50 new sites for such energy generation across the state. The House passed a related version of the Utility RELIEF Act in mid-March.
Governor Moore, Senate President Bill Ferguson, and House Speaker Joseline Peña-Melnyk have heavily promoted the bill. The legislation is among a handful of bills proposed across the country that seek to court data center developers with “Bring Your Own Clean Energy” (BYONCE) policies. The Utility Relief Act would encourage dangerous, water-intensive nuclear energy development, which is considered a clean energy source in Maryland.
Food & Water Watch Southern Regional Director Jorge Aguilar issued the following statement in response:
“Moore’s Utility RELIEF Act is nothing more than a shameless giveaway to Big Tech and energy companies that want to build AI data centers in Maryland. It is a phony bill that will do very little to help Marylanders struggling with high energy bills. The bottom line is there is nothing clean or affordable about expanding gas and nuclear plants to power AI data centers.
“State lawmakers need to dump this sham concept they’ve termed BYONCE that insinuates data centers will bring in new ‘clean energy.’ No community in Maryland should have a new nuclear reactor in their neighborhood. It’s time for a data center moratorium — now.”
The Maryland Senate has advanced a sweeping energy and utility reform bill aimed at lowering electricity costs, but provisions tied to large-scale data centers are drawing growing concern from lawmakers and advocates.
The legislation, part of a broader effort to address rising utility rates, includes measures intended to reduce costs for Maryland residents while preparing the state’s power grid for increasing demand. However, amendments added in the Senate have intensified debate over how data centers—among the largest consumers of electricity—will be handled moving forward.
A Push to Lower Energy Costs
State leaders have promoted the bill as part of a larger strategy to provide financial relief to ratepayers. The package includes reforms to utility oversight, infrastructure planning, and energy procurement, with officials estimating modest annual savings for households.
At the same time, the bill attempts to address long-term challenges tied to growing electricity demand, particularly from high-consumption facilities like data centers.
Data Centers at the Center of Debate
Data centers, which power cloud computing and artificial intelligence systems, require significant amounts of electricity and are rapidly expanding across the region. Lawmakers have increasingly focused on how to balance economic development tied to these facilities with the strain they place on the electric grid.
The Senate version of the bill includes changes that:
Expand how “large load” customers are defined, potentially capturing more data centers under special utility rules
Adjust thresholds and operational requirements tied to energy usage
Add provisions that could streamline development and encourage new projects, particularly those paired with energy generation
Supporters argue these measures help Maryland remain competitive in attracting technology investment while ensuring large users contribute to infrastructure costs.
Concerns Over Long-Term Impact
Critics say the Senate’s additions could have unintended consequences, including increased pressure on the power grid and higher long-term costs for residents.
Opponents warn that:
- Incentives for data center development may accelerate energy demand faster than infrastructure can keep up
- Utility costs tied to grid expansion could still be passed on to ratepayers
- Regulatory changes may not go far enough to ensure large users fully cover their share of system costs
Some advocacy groups and lawmakers have pushed for stricter protections to prevent residential customers from subsidizing high-energy industries.
House and Senate Still Divided
The House of Delegates has taken a more cautious approach, emphasizing stronger consumer protections and fewer incentives tied to data center growth. Key differences between the two chambers include how large energy users are classified and how costs are distributed.
With both chambers passing different versions, the legislation now heads to a conference committee where lawmakers will attempt to reach a final agreement.
What Comes Next
As Maryland continues to see increased demand from data centers and other high-energy industries, the outcome of this bill could shape how the state manages its electric grid for years to come.
The final version will determine whether the balance tips more toward economic development or ratepayer protection—an issue that remains at the center of ongoing negotiations in Annapolis.
