Gov. Maura Healey addresses data centers in Massachusetts

Massachusetts Governor Maura Healey signed Executive Order No. 658 on Tuesday, implementing new statewide regulations for large data center projects. The order mandates that proposed data centers with a peak electricity demand exceeding 25 megawatts must first secure local approval and demonstrate compliance with the administration’s development standards before state agencies can advance their permit applications.

Governor Healey emphasized that the new policy gives communities a decisive voice, stating, "Unless a community says yes to a data center, we are saying no." The order also requires developers to enter into community benefits agreements with host communities before initiating the state permitting process, with these agreements needing to meet state standards. Furthermore, it explicitly prohibits nondisclosure agreements between state agencies and data center developers, aiming to enhance transparency in the approval process.

Energy and Environmental Affairs Secretary Rebecca Tepper highlighted the financial responsibility aspect, noting that data centers will be expected to provide the necessary clean energy and infrastructure to support their operations. Companies failing to fully cover these electricity-related costs will be required to contribute fees to a proposed Ratepayer Protection Fund, with the funds returned to utility customers. The executive order directs state permitting agencies to apply a comprehensive data center framework addressing critical areas such as energy costs, water use, air quality, noise, public health, and community engagement.

Developers are also expected to protect local water resources and ensure that communities benefit from construction jobs, permanent employment, and other investments. This executive order follows the Healey administration's earlier decision to pause applications for state sales tax exemptions for data centers while developing these new safeguards for proposed projects.