Massachusetts has become the latest state to force data centers to bring their own electricity, but this time there’s a twist. A new state order would require developers building data centers larger than 25 megawatts to provide clean electricity or pay into a ratepayer protection fund.
Gov. Maura Healey’s executive order is the latest example of the state opposing data centers. Just a few years ago, technology companies and data center developers were given incentives to locate facilities in certain states. Now, as politicians try to show voters that their concerns are being addressed, they are battling growing public opposition.
Under Healey’s order, data centers with peak demands of more than 25 megawatts must bring in their own power and ensure compliance with the state’s clean energy requirements. Healy wants to generate clean power on-site as well. If not, they should fund the construction of a new generation power plant nearby or put money into a ratepayer protection fund.
According to the executive order, Massachusetts is directing communities to “avoid signing non-disclosure agreements.” To give regulators time to implement new restrictions, the governor is suspending applications for the data center sales tax exemption that took effect last month.
Healey said the data center must meet Massachusetts’ clean energy standards set out in state law, which requires a certain level of strength. The state’s clean energy standards require industries to generate only a portion of their electricity using approved sources such as wind, solar or hydropower. For example, in 2030, these sources should account for at least 40% of the total. The amount varies from year to year and increases gradually over time. However, the governor’s office has clarified that data centers will be required to meet 100% of their electricity needs with clean energy generation.
The new restrictions make Massachusetts the third state in recent months to curb data center development.
In August, Texas Governor Greg Abbott announced that all new data centers in the state would have to submit to audits by the Public Utilities Commission and electric grid operator ERCOT. In July, New York’s governor halted construction of new data centers larger than 50 megawatts.
The technology industry is starting to push back as public opinion toward data centers changes. Leading the Future, a pro-AI super PAC backed by Marc Andreessen, Ben Horowitz and Greg Brockman, is buying ads to sway voters in battleground states ahead of the midterm elections.
Update: This article has been updated with information from the Massachusetts Governor’s Office revealing that an executive order will require data centers to meet 100% of their electricity needs with clean energy generation.
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