Technology
Massachusetts mandates 100% clean power for new data centers over 25 megawatts
Governor Healey's executive order joins a wave of state-level pushback against data center expansion, requiring facilities to source all electricity from renewable energy or fund alternatives.
TechCrunch — AI
Massachusetts has unveiled stricter rules for data center development, requiring projects larger than 25 megawatts to meet robust clean energy obligations. Governor Maura Healey's recent executive order represents a significant tightening of state policy after years of generous incentives that attracted data center investment.
The New Requirements#
Under the order, data center operators must secure electricity exclusively from clean sources to power 100% of their operations—a notably higher bar than Massachusetts' existing clean energy standard, which requires only 40% of statewide industrial electricity to come from renewables by 2030. The state gives developers three pathways: generate clean power on-site, fund new renewable generation nearby, or contribute to a ratepayer protection fund to offset grid impacts.
The directive also discourages communities from signing secrecy agreements with developers, promoting greater public transparency around project terms.
A Changing Political Landscape#
The shift reflects mounting voter pressure and changing political calculations. Where state governments once competed aggressively to lure data center facilities through tax breaks and favorable terms, opposition has grown more vocal. To allow time for regulatory implementation, Healey has temporarily halted applications for a sales tax exemption that recently became available.
Massachusetts is not alone. Texas moved in August to require new data centers undergo audits by state regulators and the grid operator ERCOT, while New York halted construction permits for facilities exceeding 50 megawatts in July. This pattern signals a coordinated reassessment of data center policy across major states.
Industry Response#
The tech sector is mobilizing to counter these headwinds. Leading the Future, a political action committee backed by venture capitalists Marc Andreessen and Ben Horowitz alongside AI researcher Greg Brockman, is funding advertising campaigns aimed at shifting public opinion in swing states ahead of midterm elections.
