Massachusetts imposes new clean energy rules on data centers
Massachusetts Gov. Maura Healey has signed an executive order requiring large data centers to supply their own clean power or contribute to a ratepayer protection fund, making the state the third in recent months to restrict data center growth.
Massachusetts has joined a growing list of U.S. states cracking down on data center development. Under an executive order from Gov. Maura Healey, any data center with peak demand above 25 megawatts will need to secure its own electricity supply and ensure it meets the state's clean energy requirements.
Healey's preference is for developers to generate that clean power on-site. If that isn't feasible, they will instead need to fund new nearby generation capacity or pay into a fund designed to protect ratepayers from added costs.
The order also directs local communities to avoid signing non-disclosure agreements with data center developers. To give regulators time to put the new rules into practice, the governor is temporarily pausing applications for a sales tax exemption for data centers that took effect just last month.
Tougher than the existing standard
Massachusetts law already sets a clean energy standard requiring a rising share of electricity to come from approved sources such as wind, solar, and hydro — reaching at least 40% by 2030, with the threshold increasing over time. However, the governor's office clarified that data centers specifically will be required to cover 100% of their electricity demand with clean energy generation.
The move makes Massachusetts the third state in as many months to tighten oversight of data centers. In August, Texas Gov. Greg Abbott said new facilities in his state would face audits from the public utility commission and grid operator ERCOT. In July, New York's governor halted construction of new data centers of 50 megawatts or larger.
As public opinion turns against the industry, tech companies are pushing back. A pro-AI super PAC backed by several prominent tech investors is running ads aimed at swaying voters in battleground states ahead of the midterm elections.
