MA Data Centers Must Now Go Green or Pay Up

Massachusetts has enacted a new executive order, requiring data centers exceeding 25 megawatts of peak demand to secure their own clean power. This initiative, spearheaded by Governor Maura Healey, signals a significant shift in state-level attitudes towards the tech industry. Developers will have the option to generate renewable energy onsite, invest in nearby clean generation facilities, or contribute to a designated ratepayer protection fund if they cannot meet the clean energy requirements.

This regulatory change places Massachusetts alongside states like Texas and New York, which have also recently introduced restrictions on data center growth. Texas's governor mandated audits for new data centers, while New York’s governor halted construction of large facilities. Massachusetts is also pausing sales tax exemptions for data centers and directing communities to avoid non-disclosure agreements regarding these projects.

The clean energy standard in Massachusetts requires data centers to meet a portion of their power needs with approved renewable sources, such as wind, solar, and hydro. This percentage increases annually, reaching 40% from clean sources by 2030. Governor Healey’s office has not provided further comment on the specifics of the order.