HomeMassachusetts imposes fresh clean power mandates on data centers
Massachusetts has joined the growing list of states requiring data centers to supply their own power, but with a significant caveat. A new state regulation mandates that developers constructing facilities exceeding 25 megawatts must either provide clean energy or contribute to a fund designed to protect utility ratepayers.
Governor Maura Healey’s executive order highlights a sharp reversal in state attitudes toward data centers. Only a few years ago, tech firms and developers were heavily incentivized to establish operations in specific states. Today, they face mounting public resistance as politicians respond to voter concerns and attempt to mitigate backlash.
Under Healey’s directive, data centers with a peak demand over 25 megawatts must secure their own power supply that complies with state clean energy standards. The governor encourages on-site clean power generation, but if that is not feasible, developers must finance new nearby generation capacity or pay into a ratepayer protection fund.
The executive order also instructs local communities to “avoid signing non-disclosure agreements.” To allow regulators time to enforce these new rules, the governor has suspended applications for a data center sales tax exemption that took effect last month.
While Healey stated that data centers must comply with Massachusetts’s existing clean energy standard, the new requirements are stricter. Current law requires industries to generate a portion of their power from approved sources such as wind, solar, and hydro, with targets increasing annually—for instance, reaching 40% by 2030. However, the governor’s office clarified that data centers will now be required to meet 100% of their electricity demand through clean energy generation.
These new restrictions make Massachusetts the third state in just three months to tighten regulations on data center expansion.
In August, Texas Governor Greg Abbott announced that all new data centers in the state must undergo audits by the Public Utility Commission and the grid operator, ERCOT. Similarly, in July, New York’s governor halted construction on new data centers with capacities of 50 megawatts or more.
As public opinion shifts against data centers, the tech industry is beginning to resist. A pro-AI super PAC named Leading the Future, funded by Marc Andreessen, Ben Horowitz, and Greg Brockman, is purchasing advertisements aimed at influencing voters in key battleground states ahead of the midterm elections.
Update: This article was updated with information from the Massachusetts governor’s office clarifying that the executive order requires data centers to meet 100% of their electricity demand with clean energy generation.
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Massachusetts has joined the growing list of states requiring data centers to supply their own power, but with a significant caveat. A new state regulation mandates that developers constructing facilities exceeding 25 megawatts must either provide clean energy or contribute to a fund designed to protect utility ratepayers.
Governor Maura Healey’s executive order highlights a sharp reversal in state attitudes toward data centers. Only a few years ago, tech firms and developers were heavily incentivized to establish operations in specific states. Today, they face mounting public resistance as politicians respond to voter concerns and attempt to mitigate backlash.
Under Healey’s directive, data centers with a peak demand over 25 megawatts must secure their own power supply that complies with state clean energy standards. The governor encourages on-site clean power generation, but if that is not feasible, developers must finance new nearby generation capacity or pay into a ratepayer protection fund.
The executive order also instructs local communities to “avoid signing non-disclosure agreements.” To allow regulators time to enforce these new rules, the governor has suspended applications for a data center sales tax exemption that took effect last month.
While Healey stated that data centers must comply with Massachusetts’s existing clean energy standard, the new requirements are stricter. Current law requires industries to generate a portion of their power from approved sources such as wind, solar, and hydro, with targets increasing annually—for instance, reaching 40% by 2030. However, the governor’s office clarified that data centers will now be required to meet 100% of their electricity demand through clean energy generation.
These new restrictions make Massachusetts the third state in just three months to tighten regulations on data center expansion.
In August, Texas Governor Greg Abbott announced that all new data centers in the state must undergo audits by the Public Utility Commission and the grid operator, ERCOT. Similarly, in July, New York’s governor halted construction on new data centers with capacities of 50 megawatts or more.
As public opinion shifts against data centers, the tech industry is beginning to resist. A pro-AI super PAC named Leading the Future, funded by Marc Andreessen, Ben Horowitz, and Greg Brockman, is purchasing advertisements aimed at influencing voters in key battleground states ahead of the midterm elections.
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