Healey order subjects proposed data centers to local approvals
Massachusetts Governor Maura Healey signed an executive order mandating local approval and community benefits agreements for proposed data centers before state permitting. This order also establishes energy and environmental standards and follows prior actions on data center tax breaks. The move comes amid local moratoriums and an ongoing lawsuit concerning a Lowell data center's diesel generators.
Massachusetts Governor Maura Healey signed an executive order on Tuesday, subjecting proposed data center projects to local approval and requiring community benefits agreements with host communities before state permitting. The order, which also bans non-disclosure agreements between state agencies and data centers to ensure transparency, is part of her administration's efforts to regulate the industry, following a halt on tax breaks earlier this summer.
The executive order stipulates that data centers with peak electricity demand exceeding 25 megawatts must adhere to the state's framework, which includes procuring or developing their own energy resources without burdening ratepayers or the electric grid. They must also be located where sufficient water, wastewater, and infrastructure capacity exist, and minimize air emissions. The order also establishes a "Ratepayer Protection Fund" for data centers unable to generate immediate clean energy, with payments directed back to ratepayers.
The Governor's action comes as several Massachusetts communities, including Easthampton, Northampton, and Greenfield, are considering temporary moratoriums on data centers, while Westfield has already approved one, and Shutesbury and Holyoke have banned such developments. Despite these local actions, Governor Healey emphasized that Massachusetts is implementing