Massachusetts hits data centers with new clean power rules
Gov. Maura Healey issued an executive order requiring data centers over 25 megawatts to use 100% clean power or pay into a ratepayer fund.
Stock photo for illustration only, not from the actual event
- Massachusetts issued an executive order targeting data centers over 25 megawatts
- Developers must provide 100% clean power or contribute to a ratepayer protection fund
- The state paused applications for a recent data center sales tax exemption
- It is the third state in three months to implement stricter data center regulations
Massachusetts has become the latest state to impose strict operational requirements on data centers. On September 9, 2026, Gov. Maura Healey signed an executive order mandating that any new data center projects with a peak demand exceeding 25 megawatts must either generate their own clean power or support nearby clean energy infrastructure.
Under the new state mandate, if data center developers choose not to generate clean power on-site, they are required to fund the construction of new clean energy generation nearby or pay financial contributions into a designated ratepayer protection fund to shield local electricity consumers from rising costs.
Additionally, the executive order directs local communities to avoid signing non-disclosure agreements with tech developers. To give state regulators sufficient time to implement these restrictions, the governor has paused applications for a sales tax exemption program that had just gone into effect the previous month.
Stock photo for illustration only, not from the actual event
The governor's office clarified that data centers will be strictly required to meet 100% of their electricity demand through clean energy generation. This requirement surpasses the state's baseline clean energy standard, which mandates that overall industry utilities source at least 40% of power from approved renewables like wind, solar, and hydro by 2030.
The aggressive move by Massachusetts highlights a broader regulatory backlash against the massive energy demands of modern AI data centers. Once showered with state incentives and tax breaks, tech companies now face significant pushback from local politicians and communities worried about grid reliability and carbon emissions, mirroring recent regulatory actions taken by Texas and New York.
With this announcement, Massachusetts joins a growing wave of states reining in data infrastructure development. In August, Texas mandated audits for all new data centers through its grid operator ERCOT, while New York halted the construction of large data centers of 50 megawatts or more in July. Meanwhile, tech industry leaders are pushing back by funding pro-AI super PAC advertising campaigns in battleground states ahead of the upcoming midterm elections.
Source: TechCrunch
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