Section I
The Legal Vulnerability of Bill 26-011
Bill 26-011 adds one sentence to the Harford County Zoning Code:
This language contains no operative definitions, no size thresholds, no functional distinctions, and no measurable performance standards. It treats a 500-megawatt hyperscale AI training campus the same as a small air-cooled telecommunications switching station. That equivalence is legally indefensible.
It is also worth noting that under current law, data centers are not specifically permitted in Harford County's zoning code. They were never listed as a permitted use. That means right now, before this vote, there is no legal opening for a developer to exploit. The moment a vaguely worded ban passes, that changes — because now there is written law to challenge.
Four Grounds for Constitutional Challenge
- Vagueness. The term “data center” is undefined in the Harford County Zoning Code. A single undefined term in a zoning ordinance creates a vagueness challenge under the Due Process Clause of the Fourteenth Amendment. Courts have struck down zoning ordinances on precisely this basis.
- First Amendment exposure. Legal analysts at WilmerHale (February 2026) have flagged that blanket data center bans face viable First Amendment challenges on the theory that restricting infrastructure through which digital communication flows may burden protected speech, analogous to the Supreme Court's reasoning in Preferred Communications, Inc. v. City of Los Angeles.
- Overbreadth. A blanket prohibition that captures constitutionally protected uses alongside unprotected ones is subject to facial overbreadth challenge. A developer's counsel may argue the ordinance sweeps in low-impact telecom infrastructure that serves no legitimate regulatory interest distinct from the county's stated concern over hyperscale AI facilities.
- Adverse precedent risk. A federal court ruling against an overbroad ordinance does not merely invalidate this bill. It establishes precedent that every future developer in this county can cite. The county would be worse off than had it enacted no ordinance at all.
Section II
The Existing Model: 2606 Carsins Run Road
Harford County does not need to construct a regulatory model from scratch. A fully operational, low-impact telecommunications facility already exists within county limits and has done so without incident. The MCI facility at 2606 Carsins Run Road operates immediately adjacent to the Stoney Demonstration State Forest.
This facility is the real-world standard on which this proposed amendment is based. Any applicant seeking a permit under the amended ordinance must demonstrate that their proposed facility is functionally equivalent to or more restrictive than this standard.
| Characteristic | MCI Facility — 2606 Carsins Run Road |
|---|---|
| Facility type | Low-scale telecommunications processing |
| Cooling system | Commercial HVAC air units only — no water-based cooling |
| Water consumption | Functionally zero |
| Power demand | Below 5 megawatts |
| Environmental impact | None documented |
| Community complaints | None on record |
| Adjacent land use | Stoney Demonstration State Forest |
Existing facilities like MCI are grandfathered under this amendment. The standards described below apply to any new permit application.
Section III
The Proposed Amendment
The amendment replaces the single-sentence prohibition with a defined, tiered regulatory framework built around four elements: a functional definition of the only permissible use, physical development standards tied to parcel size, a mandatory conservation easement requirement, and an annual inspection and enforcement regime.
3A — Permitted Use Definition
The only permissible data center use in any zoning district is low-scale telecommunications processing — defined as the passive routing, switching, and transmission of commercial telecommunications traffic. This definition is intentionally drawn to mirror the operational profile of the MCI facility at 2606 Carsins Run Road.
The following uses are expressly and permanently prohibited by name and function:
- Hyperscale data centers of any kind
- Artificial intelligence model training facilities
- Artificial intelligence model inference facilities
- Cloud computing campuses
- Cryptocurrency mining facilities
- Any facility drawing a 30-day rolling average power load exceeding 5 megawatts at the utility interconnect
- Any facility using water-based cooling systems, including evaporative cooling towers, liquid immersion cooling, or direct liquid cooling
3B — Physical Development Standards
The development footprint cap is the lesser of 3% of total parcel area or 125,000 square feet. The 125,000 sq ft figure is an absolute hard ceiling regardless of parcel size.
| Parcel Size | Max Developed (3%) | Hard Cap? | Min Conservation |
|---|---|---|---|
| 100 acres (minimum) | 130,680 sq ft | Yes — capped at 125,000 sq ft | 97.1 acres |
| 150 acres | 196,020 sq ft | Yes — capped at 125,000 sq ft | 147.1 acres |
| 200 acres | 261,360 sq ft | Yes — capped at 125,000 sq ft | 197.1 acres |
| 300 acres | 392,040 sq ft | Yes — capped at 125,000 sq ft | 297.1 acres |
| 500 acres | 653,400 sq ft | Yes — capped at 125,000 sq ft | 497.1 acres |
Additional standards: maximum structure height 35 feet; minimum 500-foot setback from all parcel boundaries; minimum 300-foot setback from any waterway, wetland, or floodplain. No phased development that cumulatively exceeds the cap. No post-application subdivision of the parcel.
3C — Mandatory Conservation Easement
All acreage beyond the approved development footprint must be permanently protected under a conservation easement held by the Maryland Environmental Trust (MET) before any building permit is issued. The easement is perpetual and may not be modified without approval of the Board of Public Works and the Harford County Council.
3C(i) — Tax Incentives for Participating Landowners
| Incentive | Authority | Benefit |
|---|---|---|
| State income tax credit | Tax-General § 10-723 | $5,000/year for up to 15 years — max $80,000 total |
| State property tax credit | Tax-Property § 9-107 | 15-year credit on unimproved acreage under conservation |
| County property tax credit | County Code § 9-220 | Up to $500/year on qualifying conservation land |
| Federal income tax deduction | IRC § 170(h) | Deduction for appraised value of donated easement |
3D — Annual Inspection and Compliance
All permitted facilities are subject to mandatory annual inspections. Each inspection verifies five independently measurable criteria grounded in existing regulatory frameworks:
- Power Usage Effectiveness (PUE) ≤ 1.4 — 12-month rolling average at the utility interconnect, consistent with EU Energy Efficiency Directive 2023/1791. Any hyperscale AI facility would exceed this threshold.
- Water Usage Effectiveness (WUE) ≤ 0.5 L/kWh — Effectively mandates air-cooled operation without specifying cooling technology, which is more legally defensible than a technology mandate.
- Power draw ≤ 5 megawatts — Measured as a 30-day rolling average at the utility interconnect. The utility provider is required to report any exceedance directly to the county within five business days.
- Equipment inventory — All IT equipment documented annually. Presence of GPU clusters, AI accelerator hardware, or large-scale server infrastructure constitutes a violation regardless of how the operator labels the use.
- MDE permit currency — Current compliance with all Maryland Department of the Environment permits governing air quality, stormwater, and site conditions.
Inspection Fee Schedule
| Facility Size | Annual Fee |
|---|---|
| Up to 50,000 sq ft | $5,000 |
| 50,001 – 75,000 sq ft | $6,250 |
| 75,001 – 100,000 sq ft | $7,500 |
| 100,001 – 125,000 sq ft | $8,750 |
| Unannounced inspection (per occurrence) | $2,500 — billed to operator |
Fees are indexed to CPI and may be adjusted by County Council resolution without amending this ordinance. Fee revenue funds the inspection program.
The county may conduct unannounced inspections with 24-hour written notice upon receipt of a utility power exceedance report, a credible written complaint, an operator reporting failure, or any MDE enforcement action against the facility.
Section IV
Violations, Enforcement, and Penalties
Violations are classified into three tiers based on severity and intent. The penalty structure is proportionate, escalating, and consequential at a commercially meaningful scale.
Applies to: Late reporting; minor PUE or WUE deviations not attributable to operational changes; lapsed MDE permits.
Process: Written notice; 90-day cure period.
Penalty: $50,000 upon failure to cure, plus $50,000 per additional 30-day period.
Applies to: Power draw exceedance above 5 MW; unauthorized equipment; water cooling installation; refusal to permit inspection.
Process: Written notice; 30-day cure period.
Penalty: $250,000 flat upon notice, plus $250,000 per additional 30-day period. Permit suspension authorized.
Applies to: Deliberate conversion to any prohibited use — AI infrastructure, cryptocurrency mining, hyperscale processing — regardless of how the operator labels it.
Penalty: $5,000,000 flat civil penalty per violation.
Additional consequences: Automatic permanent permit revocation; 20-year bar on new permits; recapture of all conservation easement tax benefits; referral to the Harford County State's Attorney for criminal fraud charges.
Section V — Anti-Circumvention Provisions
The following provisions close foreseeable methods of evading the ordinance's intent:
- Anti-subdivision. No lot split or conveyance after permit application until the conservation easement is recorded. Any subdivision in the 24 months prior to application that reduced a qualifying parcel below the 100-acre minimum is subject to review for circumvention intent.
- Anti-phasing. Multiple permit applications on a single parcel or contiguous parcels under common ownership may not cumulatively exceed the 125,000 sq ft cap.
- Functional use definition. Permitted use is determined by operational function, not by what the applicant calls the activity. Equipment consistent with prohibited uses constitutes a Tier 3 violation regardless of labeling.
- Utility reporting. The utility provider is required by condition of service to transmit monthly power consumption records directly to the county. Self-reported figures may not substitute for utility-reported figures.
- Successor liability. All permit conditions, inspection obligations, and penalty exposure transfer to any successor owner or operator. Change of ownership does not extinguish obligations.
- No variance pathway. No variance, special exception, or administrative waiver may be granted from the 125,000 sq ft cap, the 100-acre minimum, the conservation easement obligation, or the 5 MW power limit. These are absolute regulatory floors, not guidelines.
Section VI — Financial Analysis
This amendment is not a prohibition on all economic use. A 125,000 sq ft telecommunications facility represents a $40,000,000 to $60,000,000 development opportunity. The mandatory conservation commitment unlocks a multi-decade package of state and federal tax benefits. The annual inspection fee of $8,750 is commercially immaterial at this revenue scale.
| Item | Detail |
|---|---|
| Maximum development | 125,000 sq ft — 2.87 acres |
| Estimated project value | $40,000,000 – $60,000,000 |
| Conservation acreage (100-ac parcel) | 97.1 acres permanently preserved |
| State income tax credit | Up to $80,000 total — Tax-General § 10-723 |
| State property tax credit | 15-year credit on unimproved acreage — Tax-Property § 9-107 |
| Federal deduction | Appraised value of donated easement — IRC § 170(h) |
| Annual inspection fee | $8,750 (125,000 sq ft facility) |
Appendix A
Proposed Ordinance Language
The following is proposed amendment language for incorporation into Chapter 267, Zoning, of the Harford County Code. It is offered as a drafting framework for review by the Office of Law and is intended to replace the single-sentence text in Bill 26-011 as introduced.
Section 267-8(J) — Telecommunications Facilities: Standards, Prohibitions, and Enforcement
(J)(1) — Definitions
- “Low-scale telecommunications facility” means a structure used exclusively for the passive routing, switching, and transmission of commercial telecommunications traffic, operating with a total rated power draw not exceeding 5 megawatts at the utility interconnect, cooled exclusively by air-based HVAC systems, and functionally equivalent to or more restrictive than the telecommunications facility operating at 2606 Carsins Run Road, Aberdeen, Maryland, as of the effective date of this ordinance.
- “Prohibited data center use” means any facility, structure, or operation that: (a) draws a 30-day rolling average power load exceeding 5 megawatts; (b) is used for artificial intelligence model training or inference; (c) is used for cryptocurrency mining; (d) is used for hyperscale cloud computing; (e) employs water-based cooling systems of any kind; or (f) installs GPU clusters, AI accelerator hardware, or equipment architecturally consistent with large-scale parallel computing workloads.
- “Conservation easement” has the meaning stated in Title 2, Subtitle 5 of the Natural Resources Article of the Annotated Code of Maryland.
- “Power Usage Effectiveness (PUE)” means the ratio of total facility energy consumption to IT equipment energy consumption, measured as a 12-month rolling average at the utility interconnect, consistent with EU Energy Efficiency Directive 2023/1791.
- “Water Usage Effectiveness (WUE)” means liters of water consumed per kilowatt-hour of IT equipment load, reported annually.
(J)(2) — Permitted Use
A low-scale telecommunications facility is a permitted use in any zoning district in which industrial or commercial uses are otherwise permitted, subject to all conditions of this subsection. No other data center or data processing use is permitted in any zoning district.
(J)(3) — Prohibited Uses
All prohibited data center uses, as defined in (J)(1), are prohibited in all zoning districts. No variance, special exception, or administrative waiver from this prohibition may be granted.
(J)(4) — Development Standards
A low-scale telecommunications facility permit may be issued only upon satisfaction of all of the following conditions:
- (a) The subject parcel contains a minimum of 100 contiguous acres under single ownership.
- (b) The total enclosed building footprint of all structures associated with the permitted use does not exceed 125,000 square feet or 3% of total parcel area, whichever is less.
- (c) All structures are set back a minimum of 500 feet from all parcel boundaries and a minimum of 300 feet from any waterway, wetland, or floodplain boundary.
- (d) No structure exceeds 35 feet in height.
- (e) No water-based cooling system of any kind is installed or operated on the premises.
- (f) Total facility power draw, measured as a 30-day rolling average at the utility interconnect, does not exceed 5 megawatts.
(J)(5) — Conservation Easement Requirement
(a) As a condition precedent to the issuance of any building permit under this subsection, the permit applicant shall record a perpetual conservation easement, held by the Maryland Environmental Trust or co-held by the Maryland Environmental Trust and the Harford Land Trust, on all acreage of the subject parcel not included within the approved development footprint.
(b) The recorded Deed of Conservation Easement and written confirmation of Board of Public Works approval shall be filed with the Harford County Department of Planning and Zoning prior to building permit issuance.
(c) The easement shall prohibit all commercial development, impervious surface installation, and removal of native vegetation within the conservation area in perpetuity.
(J)(6) — Annual Inspection and Compliance
(a) All facilities permitted under this subsection are subject to mandatory annual inspection by the Harford County Department of Planning and Zoning or its designated agent.
(b) Annual inspection fees: $5,000 for facilities up to 50,000 sq ft; $6,250 for 50,001–75,000 sq ft; $7,500 for 75,001–100,000 sq ft; $8,750 for 100,001–125,000 sq ft. Fees are indexed to CPI and adjustable by County Council resolution.
(c) Each annual inspection shall verify: (i) PUE ≤ 1.4 (12-month rolling average); (ii) WUE ≤ 0.5 L/kWh; (iii) power draw ≤ 5 MW (30-day rolling average); (iv) equipment inventory consistent with permitted telecommunications use; (v) current MDE permit compliance.
(d) The county may conduct unannounced inspections with 24-hour written notice upon receipt of a utility power exceedance report, a credible complaint, operator reporting failure, or any MDE enforcement action. Unannounced inspection cost ($2,500 per occurrence) is billed to the operator.
(e) The utility provider serving any permitted facility shall transmit monthly power consumption records directly to the Department of Planning and Zoning as a condition of service.
(J)(7) — Violations and Penalties
(a) Tier 1 — Minor Non-Compliance: Written notice; 90-day cure period; $50,000 civil penalty upon failure to cure; $50,000 per additional 30-day period of continued non-compliance.
(b) Tier 2 — Major Non-Compliance: Written notice; 30-day cure period; $250,000 flat penalty upon issuance of notice; $250,000 per additional 30-day period; permit suspension authorized.
(c) Tier 3 — Willful Conversion: $5,000,000 flat civil penalty; automatic and permanent permit revocation; 20-year bar on new permits; recapture of all conservation easement tax benefits; referral to the Harford County State's Attorney.
(J)(8) — Anti-Circumvention
No lot split, subdivision, phased permit application, change of ownership, or operational redesignation may be used to circumvent the standards of this subsection. All permit conditions and penalty exposure transfer to successor owners and operators. Functional use, not operator designation, governs compliance determinations.
(J)(9) — Effective Date
This ordinance takes effect immediately upon signature by the County Executive.