Massachusetts Governor Healey issues executive order for data center development
Massachusetts Governor Maura Healey signed an executive order establishing new regulations for large data centers. The order requires projects over 25 megawatts to secure local approval and community benefits agreements, along with demonstrating clean energy provisions or contributing to a Ratepayer Protection Fund. This policy expands on a previous pause on tax exemptions for data centers.
Massachusetts Governor Maura Healey recently signed an executive order that implements new regulations for the development of large-scale data centers across the state. The order mandates that any proposed data center project with a peak electricity demand exceeding 25 megawatts must first obtain local approval and secure community benefits agreements before advancing through the state permitting process. Additionally, these facilities are required to comply with the administration's new data center framework, which includes stipulations for providing their own clean energy or making payments into a dedicated Ratepayer Protection Fund.
This executive action builds upon a prior decision by Governor Healey in June to pause applications for data center sales and use tax exemptions, indicating a broader effort by her administration to establish more rigorous oversight and 'guardrails' for data center expansion in Massachusetts. Republican gubernatorial nominee Mike Minogue publicly criticized the Governor's order, accusing her of attempting to 're-write history' and asserting that she had previously 'rolled out the red carpet for data centers' by signing a tax credit in 2024. Minogue contended that Healey's shifting stance was politically motivated and that she 'stood up for Big Data, not Bay Staters.'