Data centers become central issue in Frederick County executive race

Data centers have emerged as one of the most prominent policy issues in the 2026 race for Frederick County executive, with incumbent Democrat Jessica Fitzwater and Republican challenger Jeff Holtzinger offering different approaches to how the industry should be regulated.

The Maryland State Board of Elections lists Fitzwater and Holtzinger as the two active candidates for county executive in the Nov. 3 general election.

The dispute centers on how much data center development Frederick County should allow, where it should be located and whether existing regulations adequately protect nearby communities.

Fitzwater has argued that Frederick County has adopted some of the strongest data center regulations in the state while limiting future development to a relatively small geographic area. Holtzinger has argued that the County should take a more restrictive approach to issues such as infrastructure, water, electricity and impacts on nearby residents.

Both candidates have said data centers should remain geographically concentrated rather than spread throughout the county, although they differ over the appropriate level of regulation and oversight. A recent Frederick County Chamber of Commerce candidate forum also highlighted those differences.

The policy debate goes back several years.

Quantum Loophole purchased the former Eastalco aluminum smelting property north of Adamstown in 2021, and the site later became known as Quantum Frederick. Frederick County subsequently adopted regulations governing issues such as setbacks, screening and noise.

In 2025, the County Council created a Critical Digital Infrastructure overlay zone, or CDI zone, restricting where data centers could be developed.

The final map included about 2,615 acres, while the Planning Commission had recommended a smaller footprint of roughly 1,600 acres.

The overlay became the subject of a citizen-led referendum effort. More than 21,000 signatures were collected, but Maryland courts ultimately ruled that the zoning map could not be placed on the ballot through referendum.

After the Maryland Supreme Court decision, Fitzwater ordered a pause on new data center applications. Frederick County’s current data center page confirms that the pause has since been extended until July 1, 2027.

The administration also announced a proposed $110 million community benefits agreement with Catellus on Sept. 1, but Fitzwater later rejected the proposal after public opposition and extended the development moratorium.

Holtzinger has criticized several of Fitzwater’s data center decisions and has said he supports reducing the CDI overlay closer to the smaller Planning Commission map.

Fitzwater has said she would also begin a process to shrink the overlay if elected to another term, limiting it to properties that already have certain development approvals. According to the source material, that would reduce the footprint to roughly 1,376 acres.

The candidates therefore share some agreement on limiting the geographic footprint of data centers, but differ on how current decisions were handled and how aggressively future regulation should proceed.