The Tension & Promise of the Push for Data Centers
- Craig Kaiser
- 20 hours ago
- 5 min read
In the rolling fields of Maryland, a debate is brewing that highlights the challenges of balancing technological progress with community preservation. At the heart of this discussion are data centers- those unassuming yet critical facilities that power our digital lives. While their benefits are undeniable, their infrastructure demands have sparked opposition, particularly in rural areas like Maryland. Let’s walk through what the backlash is about, and why, for the real estate, energy and land leasing world, there’s a strong case for understanding both sides. Because data centers, despite their controversies, are a strategic opportunity.
The Maryland Debate: A Snapshot
The Maryland Piedmont Reliability Project, a $424 million initiative, aims to construct a 67-mile transmission line to support the growing energy needs of data centers and the artificial intelligence boom. However, this project has faced significant pushback from local farmers and landowners. Concerns range from the potential loss of farmland to the impact on agritourism and property values. For many, the idea of high-voltage power lines cutting through their fields feels like an intrusion, a disruption to their way of life. The debate has even escalated to legal battles and heated confrontations, underscoring the deep emotions tied to this issue.
What’s Driving the Opposition?
Opposition to the proposed transmission line in Maryland, intended to support data centers, is driven by concerns over land use, infrastructure costs, and environmental impacts. Farmers are particularly worried about the financial and aesthetic toll of these power lines, along with the loss of agricultural land and the disruption to their livelihoods.
1) Transmission Lines Through Farmland & Forests
The MPRP would traverse Baltimore, Carroll and Frederick Counties in Maryland, routing a 500 kV transmission corridor through more than 350 parcels of farmland, conservation easements and forests. Many landowners feel they’re being compelled- via survey access, eminent domain threats and legal filings- into something that benefits elsewhere.
2) Limited Local Benefits
The project is led by PJM Interconnection, which manages the electric grid for all or part of 13 states, including Maryland. Opponents argue the proposed transmission line is basically an “extension cord” for data centers outside the state (primarily Virginia), rather than infrastructure built for Maryland’s residents. Farmers, especially, feel their land is being used to service infrastructure for others.
3) Energy Demand & Cost Concerns
State regulators and lawmakers are raising red flags: the rapid build‑out of data centers will demand huge amounts of electricity, possibly driving up utility costs for residents and placing strain on the grid.
4) Impact on Landowners & Land Preservation
Opponents of the transmission line argue the ruling sets a dangerous precedent, claiming PSEG lacks the authority to enter private property since the PSC hasn’t determined if the project is needed in Maryland. Stop MPRP, Inc., a non-profit focused on balancing technological growth with agricultural, environmental, and housing preservation, stated in a post on its website: "This ruling forces landowners, many of whom have farmed and stewarded this land for generations, to allow private utility contractors on their property against their will. This ruling subjects hardworking Americans to strangers having unfettered access to their property... This is not just a local issue."
The Case for Data Centers
While the concerns of Maryland's farming communities are valid and deserve attention, it's also important to consider the broader benefits of data centers. While data centers are indeed big, complex, and energy‑intensive, they bring concrete benefits. These facilities are the backbone of our digital economy, enabling everything from cloud storage to AI advancements. For landowners, real estate professionals, and solar and renewable developers- these benefits are meaningful.
Benefits of Data Centers
The main benefits of data centers include local economic growth, increased tax revenue, technological advancement, and grid modernization. Data centers also create numerous high-paying jobs, boosting local economies through increased income tax revenues and consumer spending. These positive financial impacts help municipalities fund public services, infrastructure projects, and community development initiatives, stabilizing and enhancing their economic health. While there are challenges associated with developing data centers, governments are adopting innovative solutions to effectively address these issues.
1) Economic Benefits & Tax Revenue
Data centers often bring significant investment to the regions they operate in, creating jobs during construction and operation. They also attract tech companies and related industries, boosting local economies. A standout example is Loudoun County, Virginia, where data centers have created over 12, 000 jobs and increased tax revenue by an estimated $890 million, which will be used to improve roads and construct 36 new schools.
2) Technological Advancement
As hubs for innovation, data centers support the development of cutting-edge technologies, from AI to big data analytics. This progress has far-reaching implications, from healthcare to education. Additionally, data centers are needed to support our growing digital world, from streaming, AI, remote work, and more.
3) Grid Modernization and Future-Proofing
Yes, the grid strain is real. But the expansion of data‑centers forces upgrades, which would modernize the electric grid: more power infrastructure, cooler designs, more efficient operations- which can benefit entire regions. As PwC notes, modern data centers may even serve as flexibility assets in the grid (for example, absorbing peak demand or providing load‑smoothing). These benefits are especially important to rural regions, where data center development is booming and rural land demand is escalating due to a lack of suitable urban sites.
4) Opportunities for Landowners and Real Estate Professionals
Data centers require large, well-connected parcels of land with access to power, fiber, transmission, cooling, and other infrastructure. Due to their high infrastructure costs and significant power demands, data centers often pay premium lease rates or purchase prices for suitable land, enabling landowners and real estate professionals to negotiate more favorable deals and receive premium prices. For owners of land suitable for solar or renewable energy, data centers present an additional opportunity, as they are hungry for reliable grid access and clean power, leading to potential "stacked lease models" that combine land, solar, and adjacent data center facilities.
To connect with data center developers, landowners and real estate professionals can list properties for lease or for sale for data centers on LandApp's marketplace. Listing is free, with no commissions, or obligations to accept any offers. Data center developers use LandApp's marketplace to conduct due diligence and find suitable properties to reach out to interested landowners with offers.
The Bottom Line
As we navigate the complexities of our digital future, it's clear that data centers will play a pivotal role. The challenges faced by Maryland farmers highlight the need for thoughtful planning and collaboration when it comes to data center development. Companies like PSEG, responsible for the Maryland project, have expressed a commitment to minimizing impacts and finding ways for agriculture and infrastructure to coexist. This approach is crucial for building trust and ensuring that progress doesn't come at the expense of local communities.
While projects like the Maryland transmission line and the related data center boom provoke strong local opposition, from a real estate perspective this is not necessarily a threat- it can be a strategic opportunity. The key is approaching it with full awareness: large‑scale power + infrastructure demand is real, and landowners who position themselves thoughtfully stand to benefit.
Listing your land for lease or for sale for data centers offers landowners the opportunity to get top-dollar offers for their property while fueling the digital infrastructure that is critical for our digital world. You can list unlimited properties for free on LandApp's marketplace with no obligations to accept any offers to connect with data center developers actively seeking their next site. The data center boom won't last forever, and the time to act is now!
