Editorial: Healey tightens the data-center construction reins
Massachusetts Governor Maura Healey has halted applications for data center tax incentives statewide, citing concerns over high energy costs and community impact. This move comes amidst increasing public and legislative opposition, highlighted by a moratorium and a lawsuit filed in Lowell against Markley Group's data center due to environmental and operational concerns. State Senator John Velis has also proposed legislation to ensure data centers cover their full utility costs.
Massachusetts Governor Maura Healey has announced a freeze on new applications for state sales- and use-tax exemptions for data centers, effective until stronger protections for residents and communities against rising utility costs are in place. This decision reflects a growing statewide and national disillusionment with data center proliferation and their impacts.
Simultaneously, the Massachusetts Legislature is considering safeguards, with State Senator John Velis filing an amendment to ensure data centers bear the full cost of their electricity and water consumption, shielding residents from subsidizing the industry's accelerating growth. The governor emphasized that data center developers must demonstrate their ability to operate without increasing costs or harming communities.
Local opposition has been escalating, with the town of Mansfield enacting a bylaw that effectively bans data centers. In Lowell, the City Council imposed a 360-day moratorium on new data center construction and expansion in March, following years of complaints from neighbors of Markley Group's facility. In April, a coalition of Lowell residents filed a lawsuit in Middlesex Superior Court challenging MassDEP's authorization of Markley's 27 industrial diesel backup generators and 16 cooling towers in a densely populated residential area, citing a "flawed air quality plan."
Critics highlight data centers' massive electricity and water demands, noise, strained infrastructure, and loss of farmland, arguing that promised benefits like high-paying jobs and tax revenue are often overstated due to their low labor intensity. Governor Healey is navigating the challenge of promoting economic expansion while protecting environmental quality and residents' quality of life.