The administration of Governor Maura Healey introduced the Bring Your Own Clean Energy policy, which mandates that data center operators must fund and procure 100% renewable power for their operations. This initiative aims to prevent energy costs from impacting regular electricity customers or straining the state power grid.
The state suspended applications for a 20-year sales and use tax exemption, originally established in 2024 for projects creating at least 100 jobs and requiring a minimum investment of $50 million. This tax break remains frozen until the state implements sufficient environmental and ratepayer protections.
Developers are now required to fund all infrastructure costs independently and prioritize on-site renewable energy generation. Additionally, a new Ratepayer Protection Fund has been created to collect payments from operators who fail to cover their full energy expenses.
On September 8, 2026, Governor Healey signed an executive order requiring projects with peak demand exceeding 25 megawatts to secure community approval through formal agreements before undergoing state-level review.
These regulations align with broader climate goals, including a 50% reduction in greenhouse gas emissions by 2030 and net-zero emissions by 2050. Massachusetts aims to add 10 GW of renewable energy capacity and 5 GW of energy storage by 2035.
