Maryland Formally Welcomes Data Centers to the State, Clarifying the Use of Emergency Backup Power Generation

Quantum Loophole, Inc., the developer of the first multi-gigawatt scale master-planned data center community, is excited to share that Maryland passed the Critical Infrastructure Streamlining Act of 2024 (CISA), which clarifies the definition and legislative framework around the use of emergency backup power generation in the state.

The CISA bill, signed by Governor Wes Moore on May 9, 2024 passed with a unanimous vote in both the House and Senate. The newly enacted legislation reiterates the state’s commitment to welcoming data centers, and fosters continuous innovation for businesses throughout Maryland and goes into effect July 1, 2024

“We applaud and thank Governor Moore and the Maryland Legislature for their foresight and efforts to streamline and clarify the use of back-up generators, not just for data centers, but for other industries as well, including healthcare, hospitality, manufacturing, and education,” comments Rich Paul-Hus, SVP of Public Affairs at Quantum Loophole. “Within just 20 miles of the Internet ecosystem located in Northern Virginia, Quantum Loophole in Frederick, Maryland, now has a fast-track path forward to welcoming data centers. Our first-of-its-kind master-planned Data Center Communities are purposely designed to create a mutual benefit for the environment, the community and the data center industry. Our goal is to create a growth path for digital infrastructure that helps to fund vital programs for residents throughout the state, while designing a nature-first approach to industrial development.”

During Governor Wes Moore’s press conference on May 9, 2024 where he signed the Critical Infrastructure Streamlining Act bill, he reiterated that “this bill is going to supercharge the data center industry in Maryland, so we can unleash more economic potential and create more good paying union jobs.”

“The impact of this bill will reverberate positively throughout the entire state for at least the next two decades. Third-party economic reports equate the value of this bill to be worth at least $30 billion in capital investments over the next 20 years with over 52,000 jobs statewide and $3.4 billion in associated employee compensation during the construction phase of Quantum Frederick alone,” adds Josh Snowhorn, Founder and CEO of Quantum Loophole. “The economic estimates only tip the iceberg of what’s possible as we bring on line more fiber optic and power enabled land for data center development for the industry and for the people of Maryland.”

Quantum Loophole’s campus in Frederick, Maryland, consists of over 2100 acres of entitled, shovel-ready land for deployment of large-scale Internet infrastructure. The campus is served by transmission power from First Energy and their wholly owned distribution entity Potomac Edison at a multi-gigawatt scale. The largest capacity fiber ring ever constructed at a capacity of up to 235,000 strands interconnects the campus to Northern Virginia via underground ducts designed to exceed the highest security standards.

Buddy Rizer, Executive Director for Economic Development in Loudoun County, Virginia, applauds the initiative: “I’ve personally seen the transformative impact that data centers can have on a community, enhancing both economic diversity and resilience. It’s thrilling to witness the burgeoning digital infrastructure in communities across the mid-Atlantic region. With Quantum Loophole’s conscientious approach to development, Frederick County and Maryland stand to reap immense benefits. As a native of the 'Free State,' I believe in the promise it holds for the future.”

For more information about Quantum Loophole and its innovative approach to master-planning data center communities, visit www.quantumloophole.com.