Massachusetts Requires Clean Power for Data Centers
Massachusetts Governor Maura Healey signed an executive order requiring large data centers (over 25 MW) to secure local approval and their own renewable energy supply or contribute to a state fund benefiting electricity customers. This new policy aims to proactively address concerns about energy consumption and grid strain, despite limited current data center investment in the state. It also represents a growing trend among US states to impose stricter energy requirements on data center developers.
Massachusetts Governor Maura Healey signed an executive order on Tuesday, September 8, 2026, establishing new, stricter regulations for data centers within the state. The order mandates that data center facilities with a peak power draw exceeding 25 megawatts must first obtain local approval before they can apply for state construction permits. Additionally, these developers are now required to finance and secure their own clean energy generation to power their operations. Should a developer opt out of providing renewable power, their project will be obligated to contribute to a new fund designed to benefit Massachusetts electricity ratepayers.
Speaking in Boston, Governor Healey highlighted the state's proactive stance, stating, "We can't have data centers coming in and taking energy away from the rest of us." This policy initiative comes even though Massachusetts has historically seen relatively low data center investment due to high energy and real estate costs. Healey also indicated that an earlier halt on new filings for data center sales tax breaks, which she enacted in 2024, influenced the development of this new mandate.
This executive order reflects a broader national trend, with states like New Jersey, New York, Pennsylvania, and Texas also implementing more stringent requirements for data center developers concerning power infrastructure and local impact. Pennsylvania Governor Josh Shapiro recently rolled out comparable guidance. Healey's administration is concurrently working to retain and attract AI talent and companies, having previously introduced a ChatGPT-powered assistant for the executive branch and engaged in discussions with Anthropic PBC leaders regarding their presence in Massachusetts.
Governor Healey's Republican opponent, Michael Minogue, offered a differing perspective, arguing against actively courting more data centers and suggesting that existing facilities should be required to provide energy support and water purification to communities. For prospective data center builders in Massachusetts, the new order clearly sets a higher bar: secure clean power, gain local backing, or budget for payments into a ratepayer fund, thereby encouraging investment in cleaner, quicker-to-deploy energy solutions.