Massachusetts has introduced new regulations for data centers with a peak demand exceeding 25 megawatts. Under an executive order from Governor Maura Healey, developers must ensure their facilities utilize clean energy sources or contribute to a ratepayer protection fund. The state encourages onsite power generation but allows for funding new local generation projects as an alternative.
The clean energy requirements align with existing state law, which mandates that a specific percentage of power must come from approved sources such as wind, solar, and hydro. This requirement is set to increase over time, reaching at least 40% by 2030. Additionally, the state is advising local communities to avoid signing non-disclosure agreements with developers.
To facilitate the implementation of these rules, the governor has paused applications for a data center sales tax exemption that was introduced last month. This move makes Massachusetts the third state in three months to impose new restrictions on data center development, following similar actions taken by Texas in August and New York in July.
The tech industry is responding to the growing public and political opposition. A pro-AI super PAC named Leading the Future, backed by Marc Andreessen, Ben Horowitz, and Greg Brockman, has begun purchasing advertisements to influence voter sentiment in battleground states ahead of the upcoming midterm elections.
