Massachusetts lawmakers push for strict data center rules
Massachusetts lawmakers are advancing legislation to impose strict environmental and financial regulations on data centers, requiring them to use clean energy and cover infrastructure costs. This state-level push follows local opposition and moratoriums in cities like Holyoke, Westfield, and Shutesbury, and complements a recent framework announced by Gov. Maura Healey to freeze data center tax incentives.
Massachusetts state lawmakers are actively pushing for new legislation to hold data centers accountable for their environmental and financial impacts on local communities. State Sen. John Velis (D-Westfield) highlighted the increasing local concerns, leading to the proposed amendment within the state Senate’s affordability package, S.3143. This amendment, which passed the Senate in a 32-8 vote, aims to establish stringent restrictions, ensuring data center costs do not burden residents and mandating robust environmental protections.
This legislative effort aligns with recent actions taken by Gov. Maura Healey, who, on June 25, announced a statewide energy framework that freezes applications for data center tax incentives. Healey's policy mandates that developers must first demonstrate their ability to avoid increased costs for other energy consumers, protect environmental and community health, and contribute meaningfully to the state's clean energy goals. The Senate amendment, championed by Sen. Vanna Howard (D-Lowell), would codify many of these principles, requiring new or expanded data centers to utilize their own clean energy sources, phase out fossil fuel backups, cover gas infrastructure costs, meet water protection standards, and publicly report their energy and water usage. Non-compliance would result in the forfeiture of state tax exemptions.
The statewide push is also fueled by specific local actions. Holyoke City Council recently banned artificial intelligence (AI) data center development over 12 megawatts following community concerns. Similarly, the Westfield City Council approved a one-year moratorium on data centers, and Greenfield is currently drafting a similar measure, while Shutesbury already has a data center prohibition in place. While Sen. Velis’s original, more comprehensive amendment was rejected, he expressed satisfaction that its core tenets were integrated into the successful amendment. The broader bill now awaits consideration by the state House of Representatives and the Governor's signature, with lawmakers acknowledging the need for continuous regulatory adaptation as technology evolves.