Key senator says state lacks power capacity for data center expansion

Massachusetts lawmakers and industry leaders are grappling with the significant energy and climate impacts posed by data centers, especially as the demand for artificial intelligence infrastructure grows. During a panel discussion in downtown Boston, a clear divide emerged between state officials on the path forward for the Bay State. Senator Barry Finegold, an Andover Democrat who chairs the Joint Committee on Economic Development and Emerging Technologies, expressed concerns that Massachusetts currently lacks the power capacity to support the kind of massive data center expansion seen in other states. He suggested the state is decades away from having the necessary energy production and import capabilities. Conversely, Representative Francisco Paulino, who serves on the House Committee on Climate Action and Sustainability, argued that immediate planning is crucial to address the burgeoning industry and its potential effects on local communities, including electricity and water consumption. The debate highlighted recent legislative activity, including the House's rejection of a Republican budget amendment, filed by Rep. Kelly Pease, that sought to establish a commission to study data center impacts. Stephen Rothstein, chief program officer at Ceres, emphasized the nationwide trend of community opposition, noting 650 bills across the country addressing data centers, including moratorium proposals. He cited Lowell's enactment of a yearlong moratorium on data center development in March as an example, and pointed out that $154 billion in data center projects globally are on hold due to community resistance and resource constraints like drought-related water permits. Kevin Bolen, KPMG's head of AI transformation, strategy and investments, acknowledged the validity of the concerns regarding power and water but expressed optimism that innovation in areas like lower-power computer chips and new energy solutions would overcome these limitations within 5-10 years. The discussion ultimately underscored the challenge Massachusetts faces in balancing its aspirations to be an AI innovation hub with its aggressive climate goals and existing high utility costs.