BALTIMORE — A Maryland data center developer, Quantum Maryland LLC, has filed a lawsuit against Frederick County and County Executive Jessica Fitzwater, claiming that Fitzwater unlawfully obstructed development to enhance her chances of reelection. The developer alleges this decision has cost them a deal valued at over $500 million.
The lawsuit was submitted to the Frederick County Circuit Court on Thursday, accusing Fitzwater of exceeding her authority by repeatedly halting data center applications, despite zoning legislation that had been approved by the County Council.
The complaint, spanning 67 pages, names Fitzwater in both her official and personal capacity, along with Frederick County and the Planning Commission. Central to the allegations is the assertion that Fitzwater’s actions were politically motivated, particularly ahead of the upcoming November election.
Michael Kuykendall, an executive with Catellus Maryland, which manages Quantum, provided a sworn affidavit detailing a conversation on June 29 with Fitzwater’s chief of staff, Patrick Murray. Kuykendall claims that Murray stated Fitzwater was disheartened by her June primary results and needed to address data center applications to navigate the election effectively.
Following this conversation, Fitzwater issued an executive order on July 1 that directed county officials to suspend the acceptance or processing of new data center applications until the end of 2026. This order came shortly after the Supreme Court of Maryland ruled that the county’s earlier data center zoning ordinance could not face a proposed voter referendum.
Additionally, the lawsuit asserts that Fitzwater informed a campaign donor in September that rejecting Quantum’s proposed agreement was necessary for winning the general election.
In response to the lawsuit, Fitzwater publicly criticized the claims, suggesting the lawsuit contains numerous inaccuracies and disproving the notion that it holds any merit. She argued that the data center industry’s financial influence is attempting to sway local government decisions, stating, “I refuse to be bullied,” and reaffirming her commitment to protect the community’s needs.
Quantum Maryland asserts that the county’s actions have already resulted in considerable financial losses. The company had a pending land transaction worth over $500 million, which they claim became stalled as a result of the moratorium. This deal initially gained momentum during discussions of a proposed $110 million community-benefits agreement but ultimately fell through after Fitzwater rejected it.
On September 1, Fitzwater celebrated the proposed agreement, calling it unprecedented in scope. However, just days later, she rescinded her approval and extended the moratorium through July 1, 2027, citing the need to protect the community against unsustainable costs.
Quantum contends that the County Charter grants the County Council exclusive authority over zoning decisions, positioning Fitzwater’s actions as unlawful interference with approved legislation.
A spokesperson for Quantum stated that the company has always operated in good faith within the established process and remains committed to redeveloping the former Eastalco industrial property. They are seeking judicial action to lift the moratorium and restore access to the county’s development approval process, alongside claiming financial damages potentially exceeding $500 million. The exact figure has yet to be verified by a court.
Fitzwater’s office has not provided further comments on the ongoing litigation. A spokesperson for the county stated it does not comment on legal matters currently in progress.
