Massachusetts Requires Local Approval for Data Centers Under New Executive Order

Massachusetts Governor Maura Healey has signed an executive order establishing new regulations for data center construction across the Commonwealth. The order mandates that data centers secure local approval before applying for state permits, commit to funding their own clean energy sources, and adhere to specific water, air, and community engagement criteria. Furthermore, new data centers will be required to contribute a fee to a ratepayer protection fund, which will be returned to ratepayers.

Governor Healey emphasized that the state cannot allow data centers to consume disproportionate amounts of energy from the grid, impacting other businesses and residents. As reported by The Boston Globe, the order restricts state agencies from issuing permits for data center projects with a peak electricity demand exceeding 25 megawatts unless applicants fulfill state guidelines and agree to a "community benefits agreement."

This executive action follows local developments in Westfield, where city officials had previously considered a data center proposal that offered significant property tax breaks but have since reconsidered. Westfield city councilors recently enacted a one-year moratorium on additional data centers, though this decision did not immediately affect a proposed project by Servistar Realties. Servistar Realties had planned a large campus of 10 buildings over a decade, which would have been the largest data center in Westfield and New England.

Westfield City Councilor Kristen Mello commented that while the Governor's order is a "good start," concerns remain regarding how data centers will source sufficient energy without negatively impacting local communities. Republican gubernatorial candidate Mike Minogue also expressed little interest in further data center investments within Massachusetts.