Developer Atmosphere Data Centers seeks to build a 360 MW data center at the site of the retired Dickerson coal power plant. But what are the details of the project? And how do Montgomery County’s latest data center policies impact the project?
The Proposed Project
In 2026, Atmosphere Data Centers, a California-based data center developer, filed an application with Montgomery County to build a data center and utility-scale battery storage facility at the site of the decommissioned Dickerson coal power plant. Atmosphere ultimately plans to develop a five-building, 360 MW data center on the site, taking advantage of the coal plant’s leftover transmission lines and substation infrastructure. It also plans to connect to the QLoop fiber optic network currently being constructed as part of the Quantum Frederick project.
The data center sits on the banks of the Potomac River, and Atmosphere plans to use water from the river to cool its computer equipment. In 2025, Atmosphere filed an application for a permit to withdraw up to two million gallons of water per day from the Potomac on peak days—more than the daily average water use of 14,000 households. The Potomac River is already heavily strained by data center water consumption, leading it to be labelled America’s most endangered river of 2026 in a report by American Rivers.
Planned location of the Dickerson data center buildings superimposed over a satellite view of the site.
Site History
The Dickerson Generating Station, the site proposed for the project, is a retired coal-fired power plant on the banks of the Potomac River. First opening in 1959, the plant operated three coal generators with a combined capacity of 588 MW. In 2016, GenOn, the plant operator, agreed to pay over $2 million in penalties and environmental projects in a settlement agreement with the state of Maryland over a complaint from the Maryland Department of the Environment that the Dickerson Generating Station and one other coal power plant were illegally polluting the Potomac and Patuxent rivers with nitrogen and violating their permits.
In 2020, GenOn announced that it would retire the Dickerson plant due to unfavorable economic conditions and the costs of environmental compliance. The plant was fully decommissioned by 2022 and was sold to Terra Energy.
Dickerson Power Plant. Source: Montgomery County Department of Planning
In 2024, Terra Energy submitted an application to develop a two-building data center and utility-scale battery storage facility onsite, which was approved by the Montgomery County Planning Board. In May 2026, the application was re-filed by Atmosphere Data Centers, this time with the current five-building plan. Montgomery County is set to host a public hearing on the updated plan on November 12 and 13, 2026.
In addition to the proposed data center, the Dickerson area is also home to several other industrial facilities, including a natural gas power plant and a trash incinerator. Largely due to the proximity to these facilities, the area around Dickerson is considered to be overburdened and underserved, with area residents disproportionately suffering the burdens of pollution.
Montgomery County Response
The re-filing of the Dickerson data center application and advocacy from community groups, including Nature Forward, prompted Montgomery County to re-evaluate their data center zoning laws. Previously, in Montgomery County, data centers did not have a specific definition in the zoning code. Instead, they were considered “communications facilities,” which are permitted by conditional use in any zone. This means that with county approval, data centers could be built anywhere in Montgomery County, including residential zones.
In January 2026, Council President Fani-González, Council Vice President Balcombe, and Councilmember Sayles introduced ZTA 26-01, an amendment to the county zoning ordinance, defining data centers in the county and limiting them to only industrial zones. It also set minimum standards for data center setbacks, noise, and diesel generators, seeking to prevent irresponsible data center development.
However, it eventually became clear to county policymakers that more action was needed to pause all data center development in the County, including the Dickerson data center, until its impacts could be properly understood and regulated. The county took several actions to stop data center development.
- Executive Order 109-26: On June 12, County Executive Mark Elrich signed an executive order pausing the approval of data center permits for six months.
- Bill 19-26E: On July 28, the County Council unanimously voted in favor of an 18-month moratorium on approving and processing data center permits. This was a compromise of two earlier proposed data center moratoriums (one for six months and the other for two years).
- Ordinance 20-35: Also on July 28, the County Council enacted an amended version of the ZTA 26-01. This updated ordinance will indefinitely prohibit data centers across the county when it goes into effect on August 17, 2026. However, the County Council has implied that this prohibition will not be permanent, stating that it will “serve as a bridge between the current zoning ordinance and a future, more extensive zoning framework.”
Dickerson Data Center Future
Currently, data center development is indefinitely prohibited in all parts of Montgomery County. This puts the Dickerson data center’s future in limbo, stopping Atmosphere Data Centers from moving forward with their permit applications and starting construction. Although the County Council has hinted that the data center prohibition may be lifted in the future, it is unclear when, if at all, the county’s zoning ordinance will be changed again to re-allow data center development, or what new regulations they may have to follow.
Atmosphere Data Centers has challenged the six-month moratorium (Executive Order 109-26) in court, claiming the county “impermissibly [changed] its mind on the interpretation of Cable Communications Systems.” However, it is not clear whether they will also challenge the 18-month moratorium or the indefinite prohibition. Overall, without any clarity if data center development will ever be allowed in the county, it is difficult to see a path forward for the project.
Take Action
Want to stay up to date on the Dickerson project? Here’s how you can stay involved!
- Sign up for Nature Forward’s Action Alerts to stay up to date with the latest Maryland Data Center news and learn how to get involved
- Are you a Montgomery County Resident? Thank your County Councilmember for pausing data center development in Montgomery County. You can find your councilperson here.
- Stay up to date with organizations involved in the project including: