Massachusetts Governor Issues Executive Order on Data Center Regulations, Critics Seek More Action
Massachusetts Gov. Healey issued an executive order requiring large data centers to meet new standards for energy, water, air quality, and public health, and mandating community benefits agreements. The order aims to address concerns about high energy costs and environmental impacts, particularly in environmental justice communities. The article argues that these guardrails are insufficient and calls for a temporary statewide moratorium on new data center development and the permanent elimination of tax exemptions.
Massachusetts Governor Maura Healey has taken steps to regulate the unchecked growth of data centers in the state by issuing a new executive order. This order mandates that large data centers, those with peak electricity demand exceeding 25 megawatts, must comply with a responsible development framework and secure community benefits agreements before receiving state permits, addressing concerns about energy, water, air quality, and public health.
The policy acknowledges community concerns about rising energy costs and the strain on the regional power grid, particularly noting the disproportionate impact on Black and brown communities already facing higher energy burdens and pollution. The executive order directs state agencies to ensure data centers bear their energy costs and support clean energy, rather than passing expenses to existing ratepayers. However, critics, like Dwaign Tyndal from Alternatives for Community and Environment, argue that the order doesn't go far enough, citing the case of Lowell where a data center expansion allegedly contributed to noise and pollution without adequate environmental review. A legal challenge by residents in Lowell was dismissed on administrative grounds, leaving substantive environmental concerns unresolved.
The article advocates for a comprehensive statewide framework with rigorous enforcement, cumulative environmental review, protections for ratepayers and water supplies, and meaningful community participation, asserting that the 25-megawatt threshold is too limited. It also calls for the permanent elimination of the state's sales and use tax exemption for data centers, citing actions in New York, Illinois, Arizona, and Ohio as precedents. The author concludes that a temporary statewide moratorium is necessary to allow Massachusetts to properly implement new requirements and pass stronger legislative protections.