Artificial intelligence enthusiasm and energy needs clash on Healey’s docket
Governor Maura Healey of Massachusetts is navigating the paradox of promoting AI while addressing increasing energy costs and community backlash against data centers. She recently issued an executive order requiring local approval and green energy regulations for data center projects, while simultaneously reversing a state sales tax exemption. This comes amidst local actions like Holyoke's data center ban and ongoing lawsuits in Lowell.
Massachusetts Governor Maura Healey is grappling with the conflicting demands of fostering artificial intelligence innovation and managing the significant energy consumption and community opposition associated with data centers. Despite her initial enthusiasm for AI and signing a bill that included a 20-year sales and use tax exemption for data centers, her administration is now seeking to address growing concerns.
Healey recently issued an executive order that mandates local approval and new green energy regulations for proposed data center projects before they can obtain state permits. This action follows a reversal of the state sales tax exemption, which the governor stated was not her idea and was inappropriate given current community concerns. The shift in policy reflects a broader “bipartisan backlash” against data center infrastructure, highlighted by lawsuits concerning proposed data centers in Lowell and Holyoke becoming the first community in the state to enact a ban on new data centers.
State Sen. Michael Moore, who had previously attempted to introduce a one-year moratorium on data centers, lauded Healey’s executive order. Moore emphasized the need for communities to have all the facts regarding the energy, water, sound, and aesthetic impacts when making decisions about data centers. The governor continues to advocate for federal oversight of AI regulation, reminding the public that even basic AI queries consume energy.