Massachusetts Debates Data Center Regulations, Lowell Enacts Moratorium

Massachusetts is currently grappling with how to regulate the development of hyperscale data centers, a debate sparked by the significant energy, water, and land demands these facilities impose, as seen in other states like Virginia. While existing data centers in Massachusetts, such as the one atop Macy's in Downtown Crossing, have operated without issue for decades, the emergence of larger facilities has prompted a reassessment of policy.

The Lowell City Council recently enacted a one-year moratorium on new data center construction, reflecting concerns about their impact. In contrast, officials in Everett are exploring a more tailored zoning strategy to manage the size and scope of future data centers, rather than imposing a complete ban. The developer of the 100-acre Everett Docklands site has proactively offered to collaborate with the city on reasonable restrictions, specifically disallowing hyperscale facilities, as the area transitions into an innovation and clean energy hub.

At the state level, Governor Healey's administration is advancing a strategy to establish Massachusetts as a leader in applied AI, which necessitates expanded data center infrastructure. The Governor signed a sales tax exemption for eligible data centers over 100,000 square feet, indicating a pro-development stance while emphasizing the need to minimize costs and community impact. The article, authored by Kate Dineen, president and CEO of A Better City, a Boston-based non-profit, suggests that Massachusetts can learn from other states and guide more responsible and equitable development through transparent, stewardship-focused, and innovative policies. It advocates for local zoning frameworks that address power and water management while accommodating necessary development, proposing measures like requiring developers to generate their own clean power, use closed-loop water systems, and deploy noise mitigation techniques.