Massachusetts has joined the growing list of states compelling data center operators to secure their own power supplies, adding a unique requirement: developers constructing facilities exceeding 25 megawatts must supply renewable energy or contribute to a fund aimed at protecting local ratepayers.
This directive from Gov. Maura Healey’s executive order reflects a rising pushback against data center expansion across several states. While tech firms and facility builders previously enjoyed generous tax breaks and subsidies to set up shop, they now face growing pushback from local communities as lawmakers respond to voter anxieties regarding power demand.
According to Healey’s directive, facilities demanding over 25 megawatts of peak power must procure independent energy supplies that fully comply with state zero-carbon targets. While the administration strongly encourages onsite renewable generation, alternative options include financing local green energy infrastructure or feeding into a ratepayer shield fund.
Furthermore, the order advises municipalities against entering into non-disclosure agreements with developers. To allow authorities sufficient time to enact these rules, the governor has temporarily halted requests for a newly introduced data center sales tax exemption that took effect just last month.
Healey emphasized that facility operators must abide by the state’s clean energy framework outlined in statutory regulations, albeit with stricter enforcement. Typically, the standard mandates a gradual phase-in of approved sources like solar, hydro, and wind—aiming for 40% renewable power by 2030. However, the governor’s staff confirmed that data centers will be subject to a far higher bar, needing 100% clean power for their total electrical consumption.
These regulations make Massachusetts the third state in recent months to restrict the rapid growth of data centers.
Back in August, Texas Governor Greg Abbott mandated that prospective facilities undergo mandatory reviews by grid operator ERCOT and the state utility regulator. Similarly, New York’s governor placed a moratorium on constructing new facilities with capacities reaching 50 megawatts or more in July.
As public skepticism grows, political advocacy from the tech sector is ramping up. The pro-AI super PAC Leading the Future—backed by prominent figures Marc Andreessen, Ben Horowitz, and Greg Brockman—is launching targeted ad campaigns in key swing states to influence voters ahead of upcoming elections.
Update: This story has been updated following clarification from the Massachusetts governor’s office confirming that the executive order mandates data centers to supply 100% clean energy for their electrical power needs.
