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Mass. Gov. Healey Issues Orders Regulating Data Center Development
The governor is expected to outline new rules as Massachusetts weighs data center jobs, investment and energy use.
On Tuesday, Massachusetts Governor Maura Healey signed an executive order requiring new data centers to earn local community approval before seeking state permits, giving residents a voice in future development decisions.
Local pushback has led Lowell, Holyoke, and Westfield to enact moratoriums over concerns regarding electricity consumption, water usage, and pollution, with Massachusetts hosting roughly 50 data centers.
Projects exceeding 25 megawatts must demonstrate compliance with state guidelines, including funding clean energy infrastructure and signing community benefits agreements, while the order prohibits using non-disclosure agreements during approval.
The executive order establishes a 'Ratepayer Protection Fund' that collects payments from data centers failing to cover their own energy supply costs, returning money to customers.
Healey, currently seeking reelection, previously suspended sales tax exemption applications for these projects, maintaining that while facilities can 'strengthen the Commonwealth's innovation economy,' they must ensure local accountability.