BALTIMORE — A Maryland data center developer, Quantum Maryland LLC, has initiated a lawsuit against Frederick County and County Executive Jessica Fitzwater. The suit alleges that Fitzwater unlawfully obstructed the development of a project potentially valued at more than $500 million to enhance her chances of reelection.
The complaint, filed on Thursday in Frederick County Circuit Court, contends that Fitzwater exceeded her legal authority by freezing data center applications despite zoning legislation that the County Council had already approved.
In total, the 67-page lawsuit names Fitzwater in both her official and individual capacities, along with Frederick County and its Planning Commission.
Key to the case are assertions that Fitzwater’s actions were politically motivated in advance of the November elections rather than based on legitimate land-use considerations. Michael Kuykendall, an executive with Catellus Maryland, which manages Quantum, provided a sworn affidavit detailing a June 29 conversation with Fitzwater’s chief of staff, Patrick Murray. According to Kuykendall, Murray indicated that Fitzwater was unsettled by her primary election results and needed to act on data centers to navigate the election period.
On July 1, Fitzwater issued an executive order halting the acceptance and processing of new data center applications through the end of 2026. This order followed a ruling by the Supreme Court of Maryland that determined the county’s previously approved data center zoning ordinance could not be subjected to a proposed voter referendum.
The lawsuit accuses Fitzwater of having informed a campaign donor in September that rejecting an agreement with Quantum was necessary for her electoral success.
Quantum asserts that the data center project included a land transaction exceeding $500 million, which had been expected to finalize in July but was disrupted by the moratorium. The deal reportedly started to progress again during discussions over a proposed $110 million community-benefits agreement before it ultimately fell through after Fitzwater’s rejection of that agreement.
Fitzwater had previously celebrated the proposed benefits agreement publicly on September 1, calling it the largest of its kind nationwide. However, just 13 days later, she reversed her decision, dismissing the agreement and extending the moratorium until July 1, 2027. In a letter dated September 14, included in the court filings, Fitzwater acknowledged the proposal’s benefits but argued that they would impose excessive costs on the community.
The lawsuit claims that the Frederick County Charter designates the authority for zoning decisions to the County Council, asserting that Fitzwater illegally suspended legislation approved by the Council. Quantum seeks to have the moratorium invalidated, restore its access to the county’s development approval processes, and secure financial damages, which they assert could exceed $500 million, though this amount has yet to be verified by a court.
Citing ongoing litigation, a spokesperson for Fitzwater’s office declined to comment on the lawsuit or its allegations.
