MEA- Data Center Energy Efficiency Grant Program
Administered by Maryland Energy Administration (MEA)
Maryland's Commercial & Industrial Grant Program provides competitive grants covering up to 100% of project costs for energy improvements at data centers, commercial facilities, and nonprofits—including upgrades like HVAC, insulation, lighting controls, and equipment efficiency. To apply, submit your proposal before the annual deadline (check MEA's website for current dates); your project will be scored on documentation quality and environmental benefits, with awards issued in rank order until funding is exhausted.
This program is attractive to your data center and commercial clients: it covers substantial portions of energy efficiency project costs (up to 100% for qualifying low-income-serving facilities, and less than 100% for others), making projects more financially viable. You'll need to ensure clients submit complete documentation before the annual deadline and meet MEA's facility eligibility requirements (commercial, industrial, data center, nonprofit, or private educational operations); successful applications are awarded competitively based on energy savings magnitude and proposal quality.
The Commercial & Industrial Grant Program (formerly the Data Center Energy Efficiency Grant Program as of FY2023) operates on a competitive, scored-and-ranked basis with a total FY26 budget of $8.4 million divided among three areas of interest: existing facilities serving general populations, existing facilities serving low-income populations (50%+ clientele), and new construction. Eligible applicants include commercial, data center, manufacturing, nonprofit, and private school/college operators; grant coverage ranges from less than 100% to 100% of total project costs depending on applicant type and low-income status, with awards issued in rank order until budget depletion. Administering agency: Maryland Energy Administration.
Program details
- Program ID
- 22041
- Effective
- 8/11/2017
- Last updated
- 10/11/2024
Eligibility
- Sectors
- commercial industrial nonprofit schools state government federal government agricultural
- Technologies
- combined heat & power building insulation data center equipment building systems hvac
Incentive amount
$4,400,000 (FY 2024)
Program summary
Starting in Fiscal Year 2023, this program transitioned to being administered under the Commercial, Industrial, and Agricultural Grant Program which is open to commercial, industrial, data center, non-profit, farms, and other agricultural entities.
The program accepts applications until funds are exhausted or until the annual deadline. The FY 2024 deadline is March 22, 2024.
The program has three areas of interest:
- AOI.1: Energy Efficiency & Electrification: Investments that reduce energy waste, eliminate greenhouse gas emissions, and where applicable, displace fossil-fuel use.
- AOI.2: Manufacturing and Combined Heat & Power: Limited to investments in fossil-fuel fired equipment proposed only in circumstances where the applicant demonstrates that electric alternatives are either unavailable or impractical. AOI.2 also considers applications for combined heat & power proposals.
- AOI.3: Agricultural Energy Efficiency: Proposals to reduce energy waste in stationary facilities that support agricultural production or farming, consistent with North American Industry Classification System (NAICS) Code 11.
Eligible applicants include: Data center operations, manufacturing, industrial operations, office, commercial, and retail applications, private education and administration, private higher education and administration.
The awards are based on amount of energy reduction achieved through the project total value of $200,000 to $400,000. Rebate an incentive amounts max out at 85% of total project cost for new construction and up to 100% of project cost for existing construction. See the FY 2024 Funding Opportunity Announcement for information
Frequently Asked Questions from February 2024:
FY24 CI&A Frequently Asked Questions (FAQ) and Eligibility Checklist
Historical program description prior to 2022:
Maryland Energy Administration (MEA) provides grants to innovative energy efficiency solutions that reduce electrical usage in data centers and improve overall Power Usage Effectiveness (PUE) in existing data centers. The competitive Program is open to any commercial, state/local government, or non-profit data center located or being constructed within the State of Maryland with an overall data floor facility size of at least 2,000 square feet. For the purposes of this Program, a data center is defined as a facility used to house only computers, server and networking systems, IT components, and supporting infrastructure. Grant awards are expected to range from $20,000 to $200,000 per eligible project, subject to funding availability.
Grants are designed to cover up to 50% of the net customer cost (up to $200,000), after other incentives and grants have been applied, for innovative and cost-effective energy efficiency solutions. Eligible efficiency measures include, but are not limited to, server virtualization; air flow optimization; aisle containment; lighting controls; uninterruptible power supplies (UPS); motors and variable frequency drives; heating, ventilation, and air conditioning (HVAC) upgrades; and building insulation and envelope improvements.
Contact & resources
- Contact email
- rory.spangler@maryland.gov
- Additional resources
Please verify current program details with the administering agency before making any financial decisions.
