Massachusetts requires clean power for new data centers
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Governor Maura Healey of Massachusetts issued an executive order requiring data center developers building facilities larger than 25 megawatts to supply their own clean power or contribute to a fund protecting electricity ratepayers.
The move reflects a growing trend of states reevaluating incentives for data centers amid public concern. Developers must now guarantee their power meets Massachusetts’ clean energy standards, and Healey encourages them to generate it onsite.
If developers cannot produce clean energy themselves, they must either fund new clean energy projects nearby or pay into the ratepayer protection fund. Massachusetts also instructed local communities to avoid signing non-disclosure agreements with data center developers, increasing transparency in the process. The governor paused applications for a recent data center sales tax exemption to allow time for regulators to implement the new rules.
Unlike the state’s general clean energy standard, which requires a percentage of power from approved sources like wind and solar, data centers will be held to a 100% clean energy standard. Massachusetts joins Texas and New York, which recently implemented restrictions on data center development. The tech industry, through groups like the pro-AI super PAC Leading the Future, is responding with advertising campaigns aimed at influencing voters.
