Massachusetts Mandates Clean Energy for Large Data Centers

Massachusetts is shifting its approach to data center development, treating the facilities' power needs as a systemic responsibility rather than a standard industrial project. According to TechCrunch, Governor Maura Healey issued an executive order requiring data centers with peak demand exceeding 25 megawatts to provide their own power and ensure it meets state clean energy requirements.

While state law generally requires industry to use a sliding scale of approved sources—such as wind, solar, and hydro—the governor's office clarified that these specific data centers must meet 100% of their electricity demand with clean energy generation. Developers are encouraged to generate this power on-site; otherwise, they must fund nearby generation construction or contribute to a ratepayer protection fund.

As part of the crackdown, Massachusetts is advising communities to avoid signing non-disclosure agreements. Governor Healey is also pausing applications for a data center sales tax exemption that began last month to allow regulators time to implement these rules.

This move follows a broader trend of state-level restrictions. TechCrunch reports that New York's governor halted construction of data centers 50 megawatts or larger in July, and Texas Governor Greg Abbott announced in August that new facilities must undergo audits by the grid operator, ERCOT, and the public utility commission.

In response to shifting public sentiment, the pro-AI super PAC Leading the Future—funded by Greg Brockman, Ben Horowitz, and Marc Andreessen—is running ads in battleground states to influence voters before midterm elections.