What happened
Maryland Governor Wes Moore announced a new state framework for the responsible development and regulation of artificial intelligence, along with an executive order imposing stricter oversight on data center construction and limiting tax exemptions for the industry.
On Tuesday, Maryland Governor Wes Moore announced a framework for the 'responsible development, deployment, and regulation' of artificial intelligence in the state. The framework is built on three guiding principles: protecting people, centering workers, and keeping kids safe. According to NBC4 Washington, the framework includes plans to recommend laws regulating AI companies regarding safety and worker protections, and to establish a 'Right of Publicity' that allows individuals to seek relief if their likeness is used by without needing to prove harm.
The AI framework also addresses specific societal concerns, including prohibiting the use of AI to discriminate in housing by banning tenant-screening tools that rely on discriminatory algorithms. It aims to ensure that financial, housing, and labor regulators inform residents that existing civil rights and consumer protection laws apply to AI-driven decisions. Additionally, the framework includes provisions to strengthen chatbot protections for young people, curb addictive AI-based social media design, and require schools to implement protocols for AI tools used by students.
On Wednesday, Moore signed a separate executive order focusing on data centers. The order defines large data centers as those covering 25 megawatts or more and subjects them to a review process based on five principles: ratepayer and grid protection, economic benefits for Marylanders, community voice, environmental protections, and transparency and accountability. Projects will receive a written, public determination from a newly created task force, categorized as Aligned, Conditionally Aligned, or Not Aligned.
The executive order also calls on the Maryland General Assembly to limit tax exemptions for data centers, which were originally enacted in 2020. Moore stated that these safeguards are intended to ensure that Marylanders do not foot the bill for data center expansion, that communities benefit, and that environmental protections are maintained. The order also mandates the creation of a public website to track data center projects and actions in the state.
Source details: nbcwashington.com ↗
Why it matters
This move signals a significant shift in state-level , moving beyond general principles to specific regulatory mechanisms like a 'Right of Publicity' for and mandatory public determinations for large data centers. It reflects growing political pressure to address the economic and environmental impacts of AI infrastructure, potentially setting a precedent for other states to follow in regulating the sector.
Maryland's actions represent a concrete step in state-level , moving from abstract principles to actionable regulatory frameworks. The establishment of a 'Right of Publicity' for is a notable legal innovation that could influence how other jurisdictions handle deepfake and likeness rights issues.
The data center regulations address growing public frustration over the environmental and economic impacts of AI infrastructure. By requiring public determinations and limiting tax incentives, Maryland is attempting to balance technological growth with community accountability and grid stability, a challenge faced by many states with significant data center presence.
This policy shift occurs in a context of increasing federal inaction on AI regulation, prompting states to take the lead in establishing guardrails. The framework's focus on worker protections and child safety highlights the human-centric approach to AI policy, distinguishing it from purely economic or security-focused regulations.
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What to watch next
Watch for the Maryland General Assembly's response to the executive order's call to limit data center tax exemptions, as well as the implementation of the 'Right of Publicity' provisions and how the new data center review task force handles initial project applications.
The next critical step is the Maryland General Assembly's legislative response to the executive order's recommendation to limit data center tax exemptions. The outcome of this legislative process will determine the financial incentives for future data center projects in the state.
The implementation of the 'Right of Publicity' provision will be closely watched, as it could set a precedent for how companies handle user likenesses. Legal challenges or clarifications from the state attorney general may be necessary to define the scope of this right.
The performance of the new data center review task force will be a key indicator of the framework's effectiveness. The first public determinations for large data center projects will provide insight into how the five principles are applied in practice and whether the process is seen as fair and transparent by stakeholders.