Massachusetts Governor Maura Healey issued an executive order requiring new data centers exceeding 25 megawatts of peak demand to provide 100% of their electricity from clean energy sources. The mandate aims to address public concerns over the environmental impact of data centers, a shift from previous state incentives.
The new regulations in Massachusetts and similar actions in Texas and New York signal a growing trend of states imposing stricter environmental requirements on data center development, potentially increasing operational costs and influencing future site selection for the rapidly expanding tech industry.
Massachusetts has enacted new regulations requiring data centers exceeding 25 megawatts of peak demand to source 100% of their electricity from clean energy. Governor Maura Healey's executive order, aimed at addressing public concerns about the environmental impact of these facilities, mandates that developers either generate clean power onsite, fund new nearby clean generation, or contribute to a ratepayer protection fund. The state is also pausing applications for a data center sales tax exemption and advising communities against signing non-disclosure agreements with developers.
This move by Massachusetts follows similar actions in other states. In August, Texas Governor Greg Abbott announced that new data centers would be subject to audits by the state's public utility commission and grid operator, ERCOT. In July, New York's governor halted construction of new data centers larger than 50 megawatts. These policy shifts reflect a growing public and political scrutiny of the energy demands and environmental footprint of the technology sector.
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