Massachusetts Governor Issues Executive Order Restricting Data Center Construction
Massachusetts Governor Maura Healey issued an executive order requiring local approval and community benefit agreements for data center projects before state permitting. The order also bans non-disclosure agreements with state agencies and mandates that data centers procure their own energy supply and limit environmental impact to qualify for tax incentives. This statewide action follows increasing local opposition and proposed bans on data centers in communities like Lowell and Salem.
Massachusetts Governor Maura Healey has signed an executive order that mandates local approval for proposed data center projects before they can proceed to state permitting. The order, which aims to ensure transparency and community benefits, also prohibits state agencies from entering into non-disclosure agreements (NDAs) with data center developers.
Under the new requirements, data centers seeking state tax incentives must secure or develop their own energy supply, rather than burdening the public electric grid, and demonstrate adequate water/wastewater infrastructure while limiting air emissions. The executive order follows Governor Healey's previous initiative to establish Massachusetts as a hub for artificial intelligence development, with experts like Boston University's Kate Saenko and John Byers supporting the order as a sensible step to balance AI infrastructure growth with environmental and economic considerations.
The state-level action comes amid a surge in local efforts to regulate or prevent data center expansion. In Lowell, residents have launched protests and filed lawsuits against a 352,000 square-foot data facility operated by the Markley Group. Additionally, Salem Mayor Dominick Pangallo has proposed a zoning ordinance to ban data center construction in his city, citing concerns about its impact on the community's size, density, and affordability.