Proposed Appeal Digital Park FAQ and Fact Sheet
What is the Appeal Digital Park?
The Appeal Digital Park is a data center facility proposed to be developed in Lusby, Maryland. The secure facility will be comprised of several interconnected data center buildings and associated infrastructure, all situated within an area designated for industrial development. The facility will house computing, networking, routing and storage hardware necessary for today’s digital services and will contribute to the backbone for cloud computing, AI and other large-scale IT operations in the region.
Where is it located?
The Appeal Digital Park will be located on 133 acres in southern Calvert County. The site is designated as I-2 Heavy Industrial, and is located west of the intersection at Rt. 2/4 and Cove Point Road. It is the former Dominion Energy, off-site area A, laydown site.
Who is behind the project?
The project is being undertaken by Natelli Holdings Company, LLC - part of a third generation, family owned enterprise that develops industrial, residential and retail projects in the Mid-Atlantic and Southeast United States.
What experience does the company have with data center development?
Natelli is engaged in the development of a number of data center sites in the Mid-Atlantic region, including two completed facilities located in Frederick, Maryland, that are now owned and operated by the United States Social Security Administration and Fannie Mae.
How large will the project be?
Planning is still in the conceptual phase, and a site plan has not yet been finalized but the campus is proposed to consist of four 220,000 SF (approx.) primary data storage and processing buildings. The buildings will be approximately 70 feet tall and will house computing, networking and storage systems. The entire site will be a secure facility with access controlled through an entry security building. The site will include additional support facilities for water storage and circulation, generators for back-up power supply, an onsite substation, networking hubs and other support infrastructure and services.
How will the data center be owned and operated after completion?
Natelli Holdings develops data center campuses and eventually either leases or transfers the property to well-known companies who construct and operate the facilities to provide cloud-based and AI services to the broader marketplace, or to service their own IT needs. Natelli is designing the campus to meet specific requirements to these companies. As the process unfolds and the project moves closer to construction, we plan to finalize arrangements with one of these major corporations who operate the backbone of the digitally connected world.
Is new utility infrastructure required? Who pays for that?
It is anticipated that a new substation will be required to energize the facility. The substation will be located on the data center property and the cost of the substation will be borne by Natelli. The substation will be connected directly to the SMECO transmission grid and costs associated with any improvements to the grid will be the responsibility of Natelli.
In addition, other infrastructure improvements, such as water and sewer extensions for potable (offices and restroom use), non-potable (any cooling needs) and sewer service will be borne by Natelli.
How much energy will the data center use?
The continuing improvements in the processing and hardware technologies and miniaturization of transistors has concentrated more and more computing power into smaller and smaller footprints within data centers. This, together with the migration to parallel processing architecture to handle the massive data intensive tasks of modern applications, has increased the demand for power and cooling to operate these facilities. It is typical today for a modern-day data center campus to require a minimum 300 MW of power to operate effectively.
The Appeal Digital Park is being designed as a state-of-the-art facility employing the most advanced technologies available for deployment. The site is being designed for 300 MW of power at peak capacity. Application has been made to SMECO for 300 MW of power to be delivered directly to the site to serve the project. System improvements required to deliver this load into the site will be the responsibility of Natelli.
ECONOMIC BENEFITS
What economic benefits will the project bring to Calvert County?
According to a third-party study evaluating impacts associated with the proposed Appeal Digital Park, the total expected project costs for development and construction of the facility will be in excess of $3 Billion. Further, the economic benefits can be categorized into two phases; the Construction Phase, and the Operational Phase:
Preliminary economic analysis shows that during the Construction Phase, the facility will support:
- Approximately 6,100 jobs (a job defined as 1 year of employment), 5,500 of which will occur in Calvert County
- $382 Million in employee compensation Statewide
- $1.95 Billion in economic activity Statewide
- $3 Million in tax revenue for Calvert
- $28 Million in tax revenue for the State
After construction, during the ongoing Operational Phase, the facility will support:
- 110 direct jobs and 386 additional statewide jobs (403 total jobs will be performed in Calvert County)
- $28 Million in employee compensation Statewide
- $138 Million in economic activity Statewide
- $45 Million in annual tax revenue for Calvert (*average revenue based on personal property depreciation over a 4 year period)
- $15 Million in annual tax revenue for the State
The plans for the proposed Appeal Digital Park are still preliminary; the third-party firm will update the study as needed as the plans advance, and we will provide the County and community updated information when those numbers become available.
Beyond the economic benefits, why should our community support the Appeal Digital Park?
Data centers are a critical part of our digital economy data centers also help improve public infrastructure components such as power grids and broadband networks, foster technological advancements that enhance our lives by providing the digital foundation for essential services like healthcare and finance. The project will bring new technology jobs, significant non-residential tax revenues for the County and State, and will strengthen and diversify the technology echo system in the Southern Maryland Region.
ONGOING OPERATIONS
Will the data center make a lot of noise?
The sound emanating from data centers is typically generated by their cooling systems and back-up generators. The processing of data within the facilities is typically not generating sound that’s audible external to the site. The cooling systems and generators do, however, create a sound. Generators are active only in limited circumstances, such as during a power failure or during regularly scheduled monthly testing. The facilities will be designed to mitigate off-site sound transmission via a number of initiatives, including careful attention to site design and setbacks, the location of generators, adequate berming and landscaping of the site perimeter, the use of sound attenuation fencing and walls, if necessary, and noise suppression systems incorporated into equipment design. We are currently working with a third-party acoustical engineering firm to analyze the sound expected to be generated by the facility and will provide this information to the community when available. We intend to employ significant sound mitigation measures in the final design of the facility and will meet all Calvert County noise ordinance requirements.
What are the environmental impacts of the backup generators?
The Appeal Digital Park will include backup generators primarily to ensure uninterrupted service in the rare event of a power outage. These generators are subject to strict State and Federal requirements, most notably the Clean Air Act, which regulates air quality nationwide. In Maryland, these standards are enforced by the Maryland Department of Environment (MDE); our facility will therefore need to apply for an Air Quality Permit through MDE. The backup generators will be manufactured to meet EPA Tier 4 or Tier 4 equivalent standards, which require modern pollution-control technologies, such as particulate filters, that significantly reduce emissions. The generators at the facility will primarily operate during emergencies and for a limited number of hours each year for testing and maintenance. Because of this limited runtime, total emissions are expected to remain well within the levels that classify the generators as a “minor source” under the Clean Air Act - meaning emissions are below the thresholds that would trigger stricter regulatory requirements.
How much water will the data center consume and where will it come from?
The Appeal Digital Park will require water to help cool the buildings from heat generated by the servers and processing equipment, particularly during the hottest days of summer months. We are proposing to source non-potable water from the Solomons Wastewater Treatment Plant to be used for cooling purposes. This treated wastewater will be circulated through a system to be constructed on the facility. The total amount of water required on a given day varies based on temperature, humidity and other environmental conditions. On the coldest days, no water will likely be required at all for cooling as the ambient air temperature will be low enough to provide adequate cooling. On the hottest summer days when water is needed, approximately one third of that water will evaporate and two-thirds will cycle back and be returned to the Solomons Wastewater Treatment Plant. We will also be using onsite storage facilities to further limit the amount of water needed for the facilities on the hottest days of the year.
Will the data center be conspicuously lit up at night?
Like most industrial sites, some level of exterior lighting is required at night for security and safety purposes for the employees operating the facility. However, by controlling the height of the exterior light poles and the orientation and types of light fixtures used, and by preventing light pollution and light spillage onto adjoining properties through best-in-practice site design, the impacts from external lighting can be largely mitigated. The light emanating from the site will be much lower than comparable large-scale facilities such as shopping centers, highway lighting or sports facilities.
Will the data center generate a lot of traffic?
It has been well documented that facilities such as Appeal Digital Park do not generate significant amounts of traffic when operational. While the facility will directly employ approximately 110 per shift when fully operational to maintain 24/7 continuous operation, data storage facilities generate far less traffic and strain on other community resources such as schools and roads than a development of other types of industrial uses such as distribution and manufacturing facilities, and certainly residential development. During the construction phase, the community should expect heavier traffic in the immediate vicinity of the site to accommodate workers, equipment, material and supply deliveries on the site.
FAQs about data centers generally
What are the economic benefits of data centers?
The data center industry provides significant economic benefits for local communities, states, and the U.S. as a whole. In 2023, the U.S. data center industry directly employed more than 600,000 workers and supported 4.7 million jobs in total.(2) The industry also provides meaningful tax contributions to local, state, and federal governments that help finance important essential services such as education, infrastructure maintenance (like roads and public transportation), public safety, and health services. In total, the data center industry’s tax contribution to local, state, and federal governments was $162.7 billion in 2023—a 146% increase from 2017.
How much do local communities benefit from data centers?
Counties that have more mature data center markets provide great examples of the many benefits provided by data centers. For example, tax contributions from data centers in Loudoun County, Virginia totaled $875 million in 2024 and accounted for 38 percent of the county’s overall tax revenues—while only comprising 3 percent of the land in Loudoun County. In nearby Prince William County, data centers contributed $166 million in tax revenue in 2024, a 50% increase over the previous year. More than half of that revenue funds county schools, and the balance goes to general fund priorities, including public safety, parks, libraries, and public transportation.
Do data centers benefit other businesses?
Data centers enable new innovations and efficiencies across our 21st-century economy. In addition, data centers are vital economic engines for local communities. Data centers create employment opportunities and are catalysts for broader economic growth, supporting ecosystems of suppliers, service providers, and construction.
The exponential growth of the data center industry has contributed to the expansion of companies throughout its supply chain. From construction and fabricators of steel used in data center projects, to HVAC manufacturing and portable sanitation companies, the data center industry fuels economic growth in countless companies across a variety of industries. The data center industry has also leaned in, working with manufacturers on shoring up supply chains and helping accelerate project construction timelines.
How many jobs do data centers really create?
The exact number of jobs in a data center can vary depending on the company, business model (hyperscale, multitenant, edge, etc.), size of the facility, and other factors, but generally it can range from dozens to hundreds of direct jobs. Plus, a report from PwC finds that each job in the data center industry supports six jobs elsewhere in the economy. In total, the industry supported 4.7 million jobs in the U.S. in 2023.(3)
Do data centers support any other types of jobs?
In addition to the well-paying and stable jobs in data center operations, the industry creates many long-term labor and construction jobs. Each individual data center can take multiple years to construct and employs hundreds of workers, with sometimes more than one thousand professionals working at peak construction. With more data center projects being built as campus developments, these construction teams might work on a larger campus site for a decade or longer.
Beyond the construction phase, there are dozens of trade jobs in each data center to support ongoing operations and maintenance, including electricians, pipefitters, heating and cooling, and more. For example, IBEW Local 26, the Northern Virginia electrician union, notes that they “have over 30 workers in every single completed data center building doing maintenance work.”(4)
For multitenant data centers, in addition to employees who work for the company that owns the data center, there are often dozens of badged employees on site each day that work for the tenant(s). These employees are often not captured in direct employment figures, even though they work in the data center.
Are data center jobs good jobs?
The data center industry offers high-wage, high-skill jobs that often don’t require a four-year degree. Labor income earned directly from the data center industry grew by 144 percent between 2017 and 2023.(5) The increase in labor income earned from the industry has grown even faster than the increase in the number of jobs, suggesting that the U.S. data center industry supports higher-earning jobs at the national level.
Why do data centers locate so close to growing areas?
Data center developers and operators consider many factors when selecting a location, and access to existing infrastructure, like fiber, electricity, non-potable water (for cooling) and sewer, is a key consideration. That infrastructure often already exists in metropolitan areas, which may also be more desirable for locating data centers because of their proximity to businesses and other end users who rely on data centers for their operations and who require lower latency (i.e., quicker access to data).
Are data centers loud?
Data center sound, like other industrial facilities, is typically regulated by local government ordinances that require facilities to minimize the volume of operational noise beyond the property lines. A report from Virginia’s Joint Legislative Audit & Review Commission (JLARC) found that data centers emit low-frequency noise that is rarely loud enough to violate noise ordinances. In addition, the data center industry often proactively adopts voluntary noise limits based on established guidance (like Environmental Protection Agency (EPA) or ANSI/ASA S1.1-2013) and invests considerable effort in noise studies, mitigation design, and cooperatively addressing community concerns.(6)
Noise challenges, when they arise for specific data centers, often reflect site-specific problems rather than an industry-wide issue. In Northern Virginia, some data centers have been built within 100’ of existing neighborhoods. Lessons learned from that experience are being applied by the industry as it evaluates suitable sites for new data center development. Strategies such as larger building setbacks, perimeter berming and landscaping, noise attenuation walls, fencing and sound suppression systems for equipment are now widely used in current data center planning and development.
Why do data centers use diesel backup generators?
Data centers need to remain operational during emergencies to ensure that access to essential data and services continues uninterrupted for customers, end users, and the general population – and especially for first responders, hospitals, and government agencies.
Due to the critical nature of data center operations, data centers maintain on-site backup generators capable of supporting operations in the event of a utility outage. Some reliability risks, including sudden utility power outages due to storms, natural disasters, and other causes, are inherently outside data center companies’ control. Currently, diesel emergency generators are the most commonly deployed technology due to their proven reliability, availability in the supply chain, siting flexibility, and workplace safety profile.
Backup diesel generators are highly-regulated resources that are typically used for a maximum of 30 minutes in an average month.(7) They are typically only used for brief maintenance and during electricity outages to ensure continuity and digital services provided by data centers, a fact that is underscored by their limited use.
While there are no feasible alternatives available today in the market to replace traditional backup generators at scale, data centers are actively evaluating new technologies that can provide similar reliability, fuel availability, siting flexibility, and workplace safety protections. As an interim measure, many data centers are looking to low carbon fuel alternatives, including renewable diesel, where available.
Do data centers use a lot of water?
The amount of water a data center uses depends on the technology each facility employs to cool its servers—air cooling, water cooling, or some combination. There is no one-size-fits-all solution for cooling, and data center operators take into account local factors when determining which cooling technology to use. These factors include humidity, climate/temperature, and availability of water, including recycled, non-potable, or harvested rainwater sources.
How much water is used by data centers that employ water cooling technology?
This varies depending on the size of the facility, climate and outdoor temperature, the type of compute done on the servers, and other factors. Data center companies prioritize efficient water practices in operations and development. The industry is actively investing in and deploying innovations, such as waterless cooling systems, closed-loop cooling systems, and the use of recycled or reclaimed water. In addition, local water availability is a key consideration in the cooling systems and strategies data centers choose to employ. Data centers also actively engage in water and watershed conservation and restoration projects in local communities and globally.
Why do data centers use so much energy?
There is unprecedented demand for the digital services that have become central to our daily lives and the modern economy. These digital, cloud-based services on which we all rely take place in physical locations—America’s data centers. With an average of 21 connected devices per household in the U.S. and 5.5 billion people currently online globally, the role of data centers is expected to grow, as consumers and businesses generate twice as much data in the next five years as they did in the past decade. This growth is driven by the widespread adoption of cloud services, the proliferation of connected devices, and the rapid scaling of advanced technologies like generative AI.
Data centers are like the brains of the internet. They process, store, and communicate all the data behind the digital services we rely on every day—everything from online shopping and streaming movies to financial transactions, government services and telehealth appointments. The unprecedented increase in demand for these digital services is driving growth in the data center industry.(8)
To perform these functions, data centers are equipped with servers and other devices that require a significant amount of energy to operate. These devices generate heat while in operation, and power also is required to remove heat and maintain operating temperatures in many data centers.
It’s important to recognize that data centers aren’t the only industry that is experiencing increases in energy use. After nearly two decades of flat electricity demand growth, the U.S. is now experiencing a need for more power, driven by the onshoring of new manufacturing, widespread electrification of buildings, industry, and transportation, hydrogen fuel production, and the digitization of our economy.
Is the data center industry doing anything about its energy use?
While managing the electrical grid is the role of utilities, grid operators, and regulators, data center companies are leaning in as engaged partners across the country to ensure both continued data center development and an affordable, reliable electricity grid for all customers.
The data center industry has been a leader in expanding access to clean energy and remains committed to sustainability and innovation. In fact, according to S&P Global Insight, U.S. data centers accounted for half of total U.S. corporate clean energy procurement through the third quarter of 2024.(9)
Data center companies are looking beyond the energy challenges of this moment. This can be seen through announcements and investments in everything from small modular reactors (SMRs) and enhanced geothermal to long-duration battery storage and carbon capture/sequestration.
How do data centers unlock greater efficiency for our modern society?
Data centers aggregate our collective computing demands efficiently and securely. Previously, these types of computing resources were dispersed across businesses, which was far less efficient and secure. In 2010, nearly 80 percent of data center computing was conducted in smaller traditional computer centers. By 2018, approximately 89 percent of data center computing took place in larger cloud data centers. By centralizing computing resources, data centers leverage innovations in design, equipment, and technology to maximize energy efficiency. While electricity consumption at data centers rose 6 percent from 2010 to 2018, computing output jumped 550 percent, marking significant gains in efficiency and productivity.(10)
It is important to recognize data centers are not simply large consumers of electricity; they also facilitate efficiency gains for homes, businesses, industrial consumers, and utilities across the economy. Many technologies and strategies deployed across the country—including smart thermostats, smart meters, managed electric vehicle charging, smart lighting, and grid enhancement technologies—require the digital infrastructure provided by data centers. The U.S. Department of Energy recently released a report identifying the ways in which AI applications supported by data centers will increasingly and significantly enhance the way in which our electricity grid is operated, particularly by enabling better grid planning and forecasting, streamlining siting and permitting processes, and improving grid reliability and system reliance.
Are data centers paying their fair share of electricity costs?
Data center companies are committed to paying their full cost of service for the energy they use, and routinely pay utilities for infrastructure directly associated with serving data center facilities, which can include breakers, transformers, entire substations, and other supporting infrastructure.
In Virginia, the Joint Legislative Audit and Review Commission (JLARC) found that “current rates appropriately allocate costs to the customers responsible for incurring them, including data center customers.”(11) While the report emphasizes a need to continue reviewing current practices and consider alternative approaches as system growth continues, it is important to note that the existing cost allocation and rate review practices have worked to date.
The same has also been found in other critical data center markets like Arizona, where the Arizona Corporation Commission (ACC) stated that, “To date in Arizona, the data center industry is paying its fair share of expansion of power generation and infrastructure under existing utility rate structures and Commission practices.”(12)
1 Credit to the Data Center Coalition (www.datacentercoalition.org) for much of the information contained herein
2 https://www.centerofyourdigitalworld.org/2025-impact-study
3 https://www.centerofyourdigitalworld.org/2025-impact-study
4 https://www.loudounnow.com/news/business-leaders-tout-data-center-benefits-at-chamber-forum/article_f5148f4e-491f-11ef-acc5-a36d8b4e0299.html
5 https://www.centerofyourdigitalworld.org/2025-impact-study
6 https://jlarc.virginia.gov/pdfs/reports/Rpt598-2.pdf
7 https://jlarc.virginia.gov/pdfs/reports/Rpt598-2.pdf
8 https://cc-techgroup.com/data-center-energy-consumption/
9 https://www.spglobal.com/commodity-insights/en/news-research/latest-news/electric-power/103124-data-centers-account-for-half-of-us-clean-energy-procurement-but-only-20-in-europe-report
10 https://datacenters.lbl.gov/sites/default/files/Masanet_et_al_Science_2020.full_.pdf
11 https://jlarc.virginia.gov/pdfs/reports/Rpt598-2.pdf
12 https://docket.images.azcc.gov/E000042869.pdf