Montgomery County Debates First Hyperscale Data Center as Regulatory Tension Mounts

Montgomery County, Maryland, debates its first hyperscale data center. The 300MW Atmosphere project in Dickerson triggers new zoning laws and environmental fears.

By: AXL Media

Published: Mar 17, 2026, 5:44 AM EDT

Source: Bisnow

The Atmosphere Project and the Quest for Green Infrastructure

The proposed project by Atmosphere Data Centers aims to repurpose a site that formerly housed a coal-fired power plant. The developer claims the 110-acre campus will be among the most energy-efficient in the world, utilizing advanced cooling systems to minimize its environmental footprint. According to company leadership, the facility's average daily water withdrawal from the Potomac River is projected at 69,300 gallons, a figure significantly lower than the site's previous industrial usage.

Despite these claims, the project has become a lightning rod for community concerns. Because Montgomery County currently lacks specific zoning definitions for data centers, the proposal is being evaluated under outdated guidelines intended for cable communications companies. This regulatory gap has prompted local lawmakers to introduce legislation that would restrict future data centers to industrial zones and mandate strict environmental guardrails to prevent the unchecked sprawl seen in neighboring Virginia.

Legislative Response and the Zoning Text Amendment

Montgomery County Councilmembers Laurie-Anne Sayles, Marilyn Balcombe, and Natali Fani-González are co-sponsoring a major Zoning Text Amendment to bring order to the sector. The ZTA seeks to define data centers legally and establish clear criteria for where they can operate. Proponents of the bill argue that without these "guardrails," the county risks the unintended consequences of air pollution, noise, and massive energy consumption that have plagued other jurisdictions.

The debate is further complicated by a looming fiscal crisis, with the county facing a projected $854 million drop in tax revenues over the next six years. This shortfall, driven by federal job cuts and declining commercial property values, has made the potential tax revenue from data centers a "golden carrot" for some officials. However, the tension between economic vitality and conservation remains high, with residents and some council members calling for a temporary moratorium on all data center development until comprehensive impact studies are completed.