Data Centers Can Accelerate Maryland’s Job Growth and Bridge State’s Budget Gap

  • Study finds that a typical data center project in Maryland, approximately 800,000 sq. ft., supports 5,000 direct and indirect jobs and $775 million in economic activity and generates approximately $18 million in tax revenues during construction.

  • Once operational, the same data center will support nearly 500 permanent jobs and generate $14 million in state tax revenue annually.

As Maryland navigates a changing fiscal and economic landscape, a new Maryland Tech Council report finds that data centers offer Maryland a rare opportunity to expand its tax base, create high-paying jobs, and lead in the digital economy—without raising taxes or straining public services.

 

The study finds that a typical data center project in Maryland, approximately 800,000 sq. ft., supports 5,000 direct and indirect jobs and $775 million in economic activity and generates approximately $18 million in tax revenues during construction. Once operational, the same data center will support nearly 500 permanent jobs and generate $14 million in state tax revenue annually.

 

“As Maryland adapts to new challenges to its economy and tax base, we need to support industries that can create tens of thousands of high-paying jobs and significantly bolster tax revenues,” said Kelly Schulz, Chief Executive Officer of the Maryland Tech Council. “The data center industry does exactly that, without the need for tax increases. By creating and executing a strategic plan for data center development, Maryland can meaningfully address its structural budget challenge, put more Marylanders to work in good-paying jobs, and build the digital infrastructure required to remain an American technological leader.”

 

MTC’s report, prepared by Sage Policy Group, comes at a critical moment for Maryland. The state ranks 40th in the U.S. in five-year job growth and is projecting a $3 billion budget deficit by Fiscal Year 2030. Meanwhile, the U.S. technology industry is expected to invest upwards of $500 billion to build out AI and data center infrastructure by 2030, presenting Maryland with a clear opportunity to strengthen its economic and fiscal position by supporting the data center industry.

 

A summary of the report’s key findings follows:

 

Economic Impacts

  • Construction Revival: Every 275 square feet of data center supports one construction job, providing a critical boost for a sector that has lost 13,000 jobs since 2019.
  • High-Quality Employment: Data center employees earn nearly $100,000 in annual pay, 55% above the statewide average.
  • Multiplier Effect: Each direct data center job creates more than two additional jobs across Maryland’s economy.

 

Fiscal Benefits

  • Major Revenue Generation: One million square feet of operational data center space produces over $16 million in annual state revenue.
  • Minimal Service Requirements: Data centers place minimal demands on government services, maximizing their net fiscal impact.
  • Construction Phase Windfall: Each square foot of data center construction generations approximately $10 in sales tax revenue.
  • Local Tax Impact: A 2023 Sage study of a potential 16 million square foot development in Frederick County estimated more than $40 million in annual tax revenue to the county.

 

Environmental Advantages

  • A Clean Energy Advantage: Maryland produces between 6% and 71% fewer carbon emissions per megawatt hour of energy compared to neighboring states.
  • Controlling Environmental Outcomes: Hosting energy-intensive facilities in Maryland ensures lower emissions and better environmental outcomes than if built elsewhere in the region.

 

Public Sentiment

  • Tax Resistance: A majority of Marylanders oppose tax increases:77% are against property tax hikes, 76% oppose income tax increases, and 73% are against raising sales taxes. Data centers can bring revenue to state and county governments without raising taxes.

 

Read the full report at this link: bit.ly/md-data-center

 

About the Maryland Tech Council

The Maryland Tech Council (MTC) is a collaborative community that is actively engaged in building strong technology and life science industries by supporting the efforts of our individual members. We are the largest technology and life sciences trade association in the state of Maryland, and we provide value by giving members a forum to learn, share, and connect. MTC brings the region’s community together into a single, united organization that empowers our members to achieve their business goals through advocacy, networking, and education. The vision for the Maryland Tech Council is to propel Maryland to become the number one innovation economy for life sciences and technology in the country. Follow us at mdtechcouncil.com, LinkedIn, Facebook, Twitter, and Youtube.

 

Media Contact

Henry Fawell
Campfire Communications
henry@campfirecomm.com

(410) 212-8468

Category: MTC Press