Mass. data centers need approval before getting a permit following new executive order
Massachusetts Governor Maura Healey signed an executive order requiring local community approval before new data centers can receive state permits. This order also mandates developers to prove projects won't harm communities and provide their own clean energy or compensate ratepayers. The action aims to address concerns about data centers' impact on electricity costs and the environment.
Massachusetts Governor Maura Healey has signed an executive order mandating that local communities must approve new data centers before they can secure state permits. The governor stated that this action is designed to grant local authorities a more substantial role in the development process, responding to increasing concerns about data centers' impact on electricity costs, the environment, and local communities.
This executive order follows a previous pause in June on new applications for the state's data center sales tax exemption. Governor Healey clarified that while she signed the legislation establishing this exemption in 2024, she did not personally include the tax break, citing widespread community concerns across Massachusetts regarding the potential effects of data centers.
The new regulations require data center developers to demonstrate that their projects will not adversely affect local communities. Additionally, developers must provide their own clean energy supply from the outset. If an immediate clean energy supply is not feasible, developers are required to compensate ratepayers for the energy consumed until their dedicated supply is in place. Massachusetts currently hosts approximately 50 data centers, and this order is expected to significantly influence future expansion within the state.