Proposed data centers subjected to local approvals under Gov. Healey's order
Governor Maura Healey signed an executive order requiring proposed data centers in Massachusetts to obtain local approvals and community benefits agreements before advancing to state permitting. The order also prevents the use of non-disclosure agreements with state agencies and establishes a framework for development focused on environmental protection, clean energy, and minimizing strain on the electric grid. Additionally, it creates a "Ratepayer Protection Fund" to compensate customers for energy consumed by data centers not using their own clean energy sources.
Massachusetts Governor Maura Healey signed an executive order on Tuesday, September 8, 2026, mandating that proposed data center projects secure local approval and community benefits agreements before proceeding to state permitting. This move follows the administration's earlier halt on data center tax incentives this summer.
The executive order aims to ensure a transparent approval process by prohibiting non-disclosure agreements between state agencies and data centers. It reinforces a framework for data center development, emphasizing public health and environmental protection. Key stipulations include expectations for data centers to procure or develop their own energy resources to avoid raising costs for ratepayers or straining the electric grid, and to be situated in areas with adequate water supplies, wastewater infrastructure, while minimizing air emissions.
Under the new order, data center projects with a peak electricity demand exceeding 25 megawatts must demonstrate adherence to this framework to obtain permits. The governor also established the "Ratepayer Protection Fund." According to Governor Healey, this fund is designed to compensate ratepayers for the energy consumed by data centers until they can provide their own clean energy supply.