Massachusetts Governor Healey Signs Executive Order Regulating New Data Center Development
Massachusetts Governor Maura Healey signed an executive order that effectively blocks new data centers exceeding 25 megawatts from receiving state permits unless they secure local approval and comply with strict state guidelines. The order mandates data centers to fund energy infrastructure, procure clean electricity, and enter community benefits agreements, addressing concerns about environmental impact and energy costs. This action is set to impact projects like Servistar Realties' proposed data center in Westfield and follows local moratoriums enacted in Westfield, Lowell, and Holyoke.
Massachusetts Governor Maura Healey signed an executive order on Tuesday aimed at blocking new data centers across the state unless they receive local approval and adhere to new state guidelines. The order applies to projects with peak electricity demand exceeding 25 megawatts, requiring them to comply with state standards and enter into a "community benefits agreement" before state agencies can issue permits or authorizations.
Governor Healey emphasized the need for proactive measures to protect communities, the electric grid, and the environment from the energy- and resource-intensive nature of data centers. The guidelines, first issued in June, mandate that data centers fully fund the costs of necessary energy infrastructure and clean energy supply while also safeguarding environmental and public health. This move comes as energy affordability and utility costs have become significant issues in Massachusetts, with Healey seeking a second term.
This executive order is expected to impact a multibillion-dollar data center project proposed by Servistar Realties in Westfield, which would require 274 megawatts of electricity. While local officials in Westfield initially supported the project, they have since enacted a one-year moratorium on additional data centers. Similar moratoriums have been approved in Lowell and Holyoke due to growing local opposition concerning energy use and water supply impacts.
Markley Group CEO Jeff Markley, whose company operates a data center in Lowell, expressed support for a statewide framework that applies consistent standards to all developers. The governor's order also requires data centers to procure enough clean electricity to meet their annual consumption or contribute to a "Ratepayer Protection Fund" to mitigate electricity costs for consumers, and it bans non-disclosure agreements between state agencies and data center project developers. Republican gubernatorial nominee Michael Minogue criticized data center expansion, arguing it would increase demand and costs for existing ratepayers.