Atmosphere Data Centers challenges Elrich’s moratorium on permit review
Developer of proposed Dickerson campus argues ‘power to legislate’ belongs to County Council, not executive
By
Ceoli JacobyJuly 16, 2026 10:45 a.m.
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The developer of a planned data center campus in Dickerson is appealing a zoning interpretation based on County Executive Marc Elrich’s (D) executive order placing a six-month hold on permits for the facilities, according to documents obtained Wednesday by Bethesda Today.
In a July 10 filing with the county Board of Appeals, developer Atmosphere Data Centers argues that the county’s Department of Permitting Services “impermissibly [changed] its mind on the interpretation of Cable Communications Systems” — the zoning category the county has historically applied to data centers — based on the executive order.
Atmosphere also argues that the Permitting Department “misinterpreted and misapplied” Elrich’s executive order by stopping review of the final two plans the developer needs before its latest application can be evaluated by the Planning Board and hearing examiner.
Through spokesperson Joe Dominguez, Elrich declined to comment on the appeal Thursday. Council President Natali Fani-González (D-Dist. 6) told Bethesda Today in a Wednesday phone interview she is aware of the appeal, but cannot discuss the matter.
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On June 12, Elrich signed an executive order barring the county’s permitting department from accepting, processing or considering permit applications for new data centers — a type of facility used to store computer servers and other information technology equipment.
During a press conference that day, Elrich said the order was “not a judgement about any specific proposal,” though calls for a moratorium followed increased public awareness of the plan to build a campus of data center buildings at the site of a former coal-fired power plant in Dickerson.
Still, Elrich said during the press conference, the owners of the site “should realize that ultimately, they’re going to be impacted.”
Dickerson plans
The Dickerson site is owned by the Florida-based company Terra Energy, which in December 2023 filed an initial application to build the campus.
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That application was ultimately approved by the county’s hearing examiner, who found the project met all necessary criteria for Cable Communications Systems — “the most appropriate way” to categorize data centers, according to an August 2022 letter from the Permitting Department to Terra.
More recently, the California-based developer Atmosphere filed an amendment to Terra’s approved plan. The amendment is set to be reviewed by the Planning Board on July 30 before heading to the hearing examiner in September. The hearing examiner hearing will make the final decision on the project’s conditional use application.
Elrich’s moratorium threw a wrench in Atmosphere’s expected timeline, according to last week’s appeal.
The day Elrich signed the executive order, documents show, Permitting Director Rabbiah Sabbakhan sent a letter to the Planning Board declaring that “any prior advice or interpretation regarding Data Centers is hereby superseded and should be disregarded.”
In accordance with the executive order, Sabbakhan also wrote that the Permitting Department would not accept or proceed with any applications for a data center.
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The problem, according to Atmosphere, is that “neither the stormwater management concept plan or the fire access plans are permit applications.”
Without those plans, Atmosphere argues, the Planning Board will not be able to make a recommendation to the hearing examiner about the developer’s updated plans, nor will the hearing examiner be able to render a decision in the case.
Atmosphere is asking the Board of Appeals to require the Permitting Department to retract its July 12 letter and to process its stormwater management and fire access plans.
Atmosphere also contends that the executive order itself is unlawful because the County Council, not the executive, has the “power to legislate” under charter government, though it did not ask the Board of Appeals to render a decision on that issue.
Pending legislation
The County Council is considering three proposals related to data center development, including two that would temporarily pause it.
In January, Fani-González, Vice President Marilyn Balcombe (D-Dist. 2) and Councilmember Laurie-Anne Sayles (D-At-large) introduced a zoning text amendment aimed at limiting where data centers can be built.
In May, two other councilmembers introduced separate bills to impose a moratorium on the county issuing building permits for data centers, but with different timelines.
Councilmember Evan Glass (D-At-large) introduced legislation for a six-month moratorium on May 6. About a week later, Councilmember Will Jawando (D-At-large) introduced a bill that would place the permitting of data center projects on hold for two years.
Fani-González, Balcombe and Sayles in a Wednesday letter wrote that “while we appreciate the County Executive’s recent executive order that imposes a six-month moratorium, we believe this moratorium should also be enacted through Council legislation.”
Though the councilmembers did not directly reference Atmosphere’s appeal in their letter, the new approach they outlined appears designed to ensure a moratorium on data centers remains in place in the event that Elrich’s executive order is invalidated.
The council’s Economic Development Committee will review both moratorium bills on July 22. If either bill receives a favorable committee recommendation, it will proceed to the full council on July 28 for a work session and vote, according to Wednesday’s letter.
Also on July 22, the council’s Planning, Housing and Parks Committee is scheduled to review the zoning text amendment. During the meeting, the sponsors plan to introduce an overriding amendment that will define “hyperscale” data centers and prohibit that use countywide, according to Wednesday’s letter.
The amended zoning text amendment would remain in place as the council continues to work on a framework that “will comprehensively address all the complex issues” related to data center development in the county, the letter read.
Bethesda Today reporter Elia Griffin contributed to this story.
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Originally published at Bethesdamagazine