Holyoke bans new data centers, Westfield proposes moratorium
Holyoke, Massachusetts, has enacted a ban on new data centers, thwarting a project by Chestnut River Power Data Center. Concurrently, Westfield, Massachusetts, is moving towards a one-year moratorium on data center construction, amidst significant public opposition over environmental and resource concerns. The statewide discontent has prompted Governor Maura Healey to halt data center tax breaks and State Senator John Velis to propose legislation for data centers to cover their electricity and water costs.
Holyoke and Westfield in western Massachusetts are at the forefront of a movement against data center development. Holyoke's City Council recently became the first in the state to enact a ban on new data centers, a zoning ordinance signed by Mayor Joshua Garcia. This move effectively blocked a proposed 20-megawatt facility by Chestnut River Power Data Center on Water Street. The decision followed intense local opposition and protests, with residents demanding a permanent stop to data center construction due to resource consumption and environmental concerns.
Two days after Holyoke's ban, Westfield's City Council took the initial step towards approving a one-year moratorium on data center construction, following a Planning Board recommendation. This action, which requires a second vote to be official, aims to allow the city to study the impacts on public health, drinking water, and air quality. An existing approved project by Servistar Reality LLC, which plans 10 data center buildings, is reportedly exempt from Westfield's proposed moratorium, causing confusion and frustration among residents.
The growing discontent has also reached the state level. Governor Maura Healey announced a halt to tax breaks for data center developers, while State Senator John Velis, who previously co-sponsored the tax break bill, proposed an amendment requiring data centers to cover their full electricity and water consumption costs. These state-level actions acknowledge the significant resource demands of AI-driven data centers, which are projected to consume an increasing share of U.S. electricity.
The Servistar project in Westfield faces its own challenges, including needing a time extension from the Planning Board before October and a five-year timeline for a multi-million-dollar substation to be built after an interconnection study by ISO New England. A recent Federal Energy Regulatory Commission (FERC) order requiring regional transmission organizations to justify their tariffs for large load customers could potentially affect this timeline, though its immediate impact on New England's generation-constrained grid remains unclear.