Massachusetts Tightens Rules on Data Centers as AI Boom Hits Home
Massachusetts lawmakers are advancing strict new requirements for data centers through an energy affordability bill to protect communities from environmental and financial burdens. These rules mandate clean energy use, cover infrastructure costs, and meet water protection standards. This legislative push follows Gov. Maura Healey's recent freeze on tax breaks for new data center projects.
Massachusetts lawmakers are advancing strict new requirements for data centers in response to the AI boom, aiming to protect communities from environmental and financial costs. The Massachusetts Senate passed its energy affordability bill (S.3143) by a 32-8 vote.
An amendment, introduced by Sen. Vanna Howard, mandates that new or expanded data centers use 100% clean energy, phase out fossil-fuel backups, cover their own grid and gas infrastructure costs, adhere to water protection standards, sign labor and community benefit agreements, and publicly report their energy and water usage. Violations could result in the loss of tax exemptions. This legislative action largely formalizes a framework introduced by Gov. Maura Healey on June 25, which paused applications for the state's 20-year sales and use tax exemption for large projects. Governor Healey emphasized that developers must avoid increasing costs for residents, harming the environment, or burdening communities. The bill now proceeds to the House for further consideration as part of ongoing energy policy discussions.