Data Centers & Crypto Mining in Gaithersburg, MD

Every city handles data centers & crypto mining a little differently. In Gaithersburg, Maryland, there are 2 distinct rules that residents and property owners should be aware of. Some are stricter than what neighboring cities enforce, and others are more relaxed. Here is what you need to know.

Data Center Zoning & Siting

Gaithersburg allows data centers and cryptocurrency-mining facilities only as a conditional use in the I-1 Light Industrial and I-3 Industrial Office Park zones. Table 24-3.10-1 of the city's own zoning code, adopted because Gaithersburg (unlike most Montgomery County municipalities) runs independent zoning, marks the use with a flat dash, meaning prohibited, in every commercial, employment, residential and floating district.

Key details: Allowed zones: I-1 Light Industrial, I-3 Industrial Office Park only. Permission type: Conditional use, not by-right. Prohibited zones: CB, C-1, C-2, E-1/E-2, all residential/floating zones. Governing table: Table 24-3.10-1, Sec. 24-3.10. Enforcement: Municipal infraction, up to $1,000 added fine.

Siting or operating a data center outside the I-1 or I-3 zones, or without conditional-use approval inside them, is a zoning violation under section 24-15.1 and is enforced as a municipal infraction under chapter 1, section 1-9. Planning and Code Administration investigates complaints, and the city manager may order discontinuance of the illegal use. Fines run up to the maximum set by city council resolution, with an added penalty of up to $1,000 for late payment, and section 1-11 allows the city to lien the property for correction costs.

This is not one of those rules that cities tend to ignore. Gaithersburg actively enforces its data center zoning & siting requirements.

Crypto Mining Rules

Gaithersburg allows data centers and cryptocurrency mining facilities only as a conditional use in its I-1 and I-3 industrial zones, requiring city council approval, and bans the use in every commercial, residential and floating zone.

Key details: Permitted zones: I-1 and I-3 industrial, conditional use. Approval body: City council conditional-use approval. Floating zones: Flatly prohibited, no exception. Residential zones: Prohibited via unlisted-use catch-all. CB/C-1/C-2/E-1/E-2: Prohibited.

Building or operating a data center or crypto-mining facility without the required city council conditional-use approval, or in a zone where the use is flatly prohibited, is a Chapter 24 zoning violation enforceable as a municipal infraction under Section 1-9; the city can deny or revoke the building permit and use-and-occupancy certificate until council approval is obtained or the facility relocates to a zone permitting it.

This is not one of those rules that cities tend to ignore. Gaithersburg actively enforces its crypto mining rules requirements.

The Bottom Line

Gaithersburg is tougher than many cities when it comes to data centers & crypto mining. Out of the 2 rules covered here, 2 are rated strict. If you are a homeowner, renter, or business owner in Gaithersburg, take the time to understand these requirements before they become a problem. Most violations come with fines, and some repeat violations can escalate.

This guide is based on Gaithersburg's current municipal code. Local rules can and do change, so check the individual ordinance pages for the latest details, penalties, and FAQs.