Maryland Lawmakers Propose Different Solutions to Rising Electricity Costs Amid Data Center Boom

Strategic Insights -

Maryland lawmakers on both sides of the aisle have proposed separate solutions to address the rising electricity costs caused by the increasing demand from data centers. A coalition led by Sen. Katie Fry Hester (D-Howard and Montgomery) aims to shield consumers from power infrastructure costs associated with the rising number of data centers in the region, while a coalition led by House members in the Maryland Freedom Caucus focuses on bolstering energy supply to address high bills.

Key Takeaways:

  • The coalition led by Sen. Katie Fry Hester wants to protect consumers from power infrastructure costs associated with data centers, which are projected to grow by 32 gigawatts from 2024 to 2030.
  • The group convened its inaugural meeting, featuring legislators from 13 states, including Maryland, that are part of the electric grid operated by PJM Interconnection.
  • Del. Lorig Charkoudian (D-Montgomery) stated that residential ratepayers should not bear the brunt of the costs, emphasizing the need for explicit protection in ratepayer proposals.
  • The coalition led by the Maryland Freedom Caucus proposes hosting a series of "Powering the Mid-Atlantic" hearings to address high bills, which Rep. Robin Grammer (R-Baltimore County) blames on climate policies and the EmPOWER Maryland surcharge.
  • The EmPOWER Maryland surcharge funds energy efficiency programs for Maryland households and efforts to transition away from fossil fuel heating.
  • The legislature is expected to discuss the issue during the 2026 session, with the Maryland State Department of Education seeking funding for instructional coaching.

Statistics:

  • The projected growth of data center demand is 32 gigawatts from 2024 to 2030, with about 30 gigawatts attributed to data center demand.
  • The estimated cost of increased demand could be near $100 billion.
  • The.PIJ Interconnection grid is expected to grow by 32 gigawatts from 2024 to 2030.

Sources:

  • Hester, K. (n.d.). Maryland Matters. Retrieved from https://marylandmatters.org/donate/?oa_referrer=midstorybox
  • Chisholm, B. (n.d.). Maryland Freedom Caucus. Retrieved from https://marylandmatters.org/2025/08/27/minor-gains-made-in-maryland-test-scores-but-wide-demographic-gaps-remain/
  • Wright, C. (n.d.). Maryland State Department of Education. Retrieved from https://marylandpublicschools.org/about/Pages/DEE/SBOETeacherMember/index.aspx
  • Nagel, M. (n.d.). Maryland Association of Boards of Education. Retrieved from https://www.mabe.org/annual-conference/
  • Curia, C. (n.d.). Notre Dame of Maryland University. Retrieved from https://www.ndm.edu/president-yam-to-step-down-in-june-2026/