Massachusetts has introduced a significant mandate for data centers, requiring those with a capacity exceeding 25 megawatts to ensure they provide their own clean energy or contribute to a fund designed to protect consumers.
Under the leadership of Governor Maura Healey, this executive decision reflects a growing trend among states to impose stricter regulations on data centers. Just a few years back, tech firms and developers were actively encouraged with various incentives to establish facilities in different regions. Now, they find themselves facing strong public opposition as political leaders aim to demonstrate responsiveness to community concerns.
According to Healey’s executive order, data centers that exceed the 25-megawatt threshold must meet their power needs through sources that comply with Massachusetts’ clean energy standards. Ideally, they would generate their own clean electricity on-site. If this is not feasible, they must either invest in local clean energy generation or contribute to a consumer protection fund.
Furthermore, the Massachusetts directive instructs communities not to engage in non-disclosure agreements. To allow time for the new regulations to be implemented, the governor has also frozen applications for a tax exemption applicable to data centers that took effect recently.
Governor Healey emphasized that data centers are expected to align with the state’s clean energy standards, which have been given additional strength. These standards mandate that a specific percentage of power generation comes from approved renewable sources such as wind, solar, and hydroelectricity. For instance, by 2030, at least 40% of total energy must come from these resources, with the requirement increasing annually. However, it has been clarified that data centers must fulfill 100% of their electricity needs with clean energy.
With these new rules, Massachusetts joins the ranks of two other states that have imposed restrictions on the growth of data centers in just the past few months.
In August, Texas Governor Greg Abbott mandated that all new data centers in the state undergo audits conducted by the public utility commission and the state’s grid operator, ERCOT. Meanwhile, in July, New York’s governor halted the construction of data centers with a capacity of 50 megawatts or larger.
As public opinion begins to turn against data centers, the tech industry is starting to react. A pro-AI political action committee, Leading the Future—backed by prominent figures such as Marc Andreessen, Ben Horowitz, and Greg Brockman—is launching advertisements aimed at influencing voters in key states ahead of upcoming midterm elections.
Note: This article has been updated to reflect new information from the Massachusetts governor’s office concerning the requirement for data centers to fully meet their electricity needs with clean energy.
