HAGERSTOWN, Md. — Hagerstown officials are moving ahead with plans to annex industrial-zoned land tied to a proposed data center. The move has raised questions about the city’s intentions for the property and how it might affect Washington County’s data-center rules.
At the Oct. 20 Mayor and Council work session, city planning staff presented an amendment to the Burkholder-McDade annexation plan after discovering a labeling error in Maryland’s priority funding area.
City officials called the amendment an administrative fix, but the annexation has drawn interest from Hagerstown Rapid Response. The community group has raised concerns about the city’s transparency regarding the property and its possible link to Diversified Capital’s proposed Martin Farm data center.
A public hearing for the annexation, known as case A-2026-02, is scheduled for Tuesday, Oct. 27.
Annexation involves property linked to proposed data center
Hagerstown Rapid Response reported on Oct. 20 that the Burkholder-McDade annexation includes land associated with Diversified Capital, a developer reportedly planning a data center in Washington County.
The group said that 12440 Burkholder Lane is part of the area under consideration for development.
The group reported that in June 2024, the property was advertised as a suitable site for a data center. A January 2025 real estate listing described plans for a facility of about 1 million square feet, suitable for a data center or other industrial uses.
The group also said that Washington County’s Department of Business and Economic Development mentioned Diversified Capital’s $50 million Martin Farm project in a May 2025 presentation, projecting 300 jobs.
These figures are projections and do not guarantee construction or job creation.
The annexation application was reportedly filed on June 30, the same day Washington County commissioners placed a one-year pause on data center projects in county land.
Hagerstown Rapid Response argues that if the property becomes part of Hagerstown, it would not be affected by the county’s moratorium.
The Oct. 20 council meeting did not discuss how the annexation might affect the moratorium. Whether the city would have authority over the property and whether county rules would still apply depend on the annexation’s approval and the laws involved.
City corrects priority funding area designation
At the work session, city planning official Stephen Bockmiller said staff members discovered a mistake while preparing documents for the annexation hearing.
The annexation plan initially stated the property was not in Maryland’s priority funding area.
However, staff members later found that the property is within the state’s designated area.
Bockmiller said the city consulted its attorney and was advised to officially update the annexation plan before the public hearing.
The correction would remove the word “not” from the property’s priority funding description.
Bockmiller told council members that this change would not affect the hearing schedule or require restarting the annexation process.
Maryland’s priority funding areas are locations where the state supports growth and invests in public infrastructure.
Council members asked how this designation relates to Washington County’s planning, industrial zoning and water and sewer categories. He explained that the designation generally identifies areas where development is anticipated rather than locations prioritized for agricultural or environmental preservation.
He added that the property’s designation has changed over time, but he could not say exactly how it ended up in the priority funding area.
Washington County currently zones the proposed annexation area for industrial use.
County moratorium adds layer to annexation debate
Hagerstown Rapid Response members say they are especially concerned about the annexation’s timing.
According to the group, its timeline shows that Washington County commissioners approved the data center moratorium on June 30, the same day the property owners asked Hagerstown to annex the land. Annexing the land into the city could allow the proposed development to proceed outside the county’s restrictions.
According to the group, the county set new rules for data center development on Sept. 30.
The Oct. 20 work session did not address how these county actions relate to the proposed annexation.
Advocacy group questions transparency
Hagerstown Rapid Response has questioned how city and county officials have handled discussions with Diversified Capital.
In its Oct. 20 publication, the group said Washington County commissioners met privately with individuals linked to the developer on Dec. 9, 2025, under a nondisclosure agreement.
The publication said county meeting minutes noted that the agreement prevented the public from accessing details of the presentation.
The group also reported that Hagerstown’s Mayor and Council held a closed session that same day to discuss a business or industrial development proposal.
Questions remain about infrastructure, development plans
The priority funding label prompted council members to discuss how expected development aligns with public infrastructure planning.
Council members asked whether land marked for growth should also have matching water and sewer service categories.
Bockmiller said that water and sewer planning usually follows a jurisdiction’s overall plan and should align with broader growth goals.
However, he said he could not confirm how closely the county’s utility categories matched the property’s priority funding area label.
The work session did not decide whether annexation would require additional water or wastewater capacity, what upgrades might be needed, or who would pay for them.
These questions could become important if the property is eventually used for a large industrial facility or data center.
Public hearing scheduled for Oct. 27
The Burkholder-McDade annexation hearing will be held during the Hagerstown Mayor and Council’s regular meeting at 7 p.m. on Tuesday, October 27, at City Hall, 1 E. Franklin St.
Residents can share their views on the annexation.
Hagerstown Rapid Response has urged residents to attend and ask questions about the proposed development, the county’s data center moratorium and how the city has communicated with the developer.
Unresolved issues include how the property will be used, whether county data center rules will still apply after annexation and what infrastructure investments future development might require.
The Oct. 20 work session confirmed that the city intends to correct its annexation documents, but it did not resolve those broader development questions.
