Healey signs executive order requiring new data centers to get local approval before development
Governor Maura Healey signed an executive order requiring large data center projects in Massachusetts to secure local community approval and meet state guidelines before receiving state permits. The order aims to give communities a stronger voice and ensure developers address environmental and infrastructure impacts, including clean energy and water usage. It also establishes an alternative compliance payment mechanism for projects not producing enough clean electricity.
Governor Maura Healey signed an executive order on Tuesday, implementing a new requirement for large data center projects in Massachusetts. The order mandates that state agencies cannot issue permits for data centers with a peak electricity demand exceeding 25 megawatts unless the developer first obtains approval from the host community and demonstrates compliance with the state's Data Center Framework, including a community benefits agreement.
The executive order aims to empower local communities, requiring developers to fund their own clean energy and infrastructure or contribute to a Ratepayer Protection Fund if they cannot. It also obliges companies to prove their projects will not adversely affect local water supplies, air quality, or public health. An exception to the 25-megawatt threshold may be granted jointly by the Secretaries of Energy and Environmental Affairs and Economic Development for projects tied to accredited colleges, universities, medical care providers, or state-sponsored programs.
Furthermore, the order directs MassDEP to establish protocols for water use, wastewater, and stormwater compliance for data centers by the end of 2026. It also encourages developers to use responsible labor practices, such as project labor agreements and local hiring. This action follows the suspension of the state's sales-tax exemption for data centers in June and amid growing local opposition, with cities like Westfield and Lowell adopting moratoriums and Holyoke banning data centers outright.