Massachusetts needs a data-center strategy, not a series of permits

The Healey administration in Massachusetts has paused applications for its data-center sales-tax exemption, citing the need to develop stronger protections for ratepayers, public health, water, air quality, and the environment. This pause, initiated on June 25, aims to reassess the program, starting with the principle that data centers should bear the full cost of their energy supply, interconnection, and infrastructure.

The article, an opinion piece from CommonWealth Beacon, argues that Massachusetts should use this opportunity to establish a comprehensive three-part data-center strategy. First, data centers must pay the full cost of their extraordinary electricity, water, and public-infrastructure demands. Second, host municipalities should receive a developer-funded environmental master plan and retain all local taxes, mitigation payments, and community benefits. Third, covered data centers should contribute to a separate statewide linkage fund aimed at transforming environmental justice neighborhoods with high energy burdens and cumulative environmental harms.

This proposed strategy would evaluate data centers as a portfolio, considering their cumulative impact on the electric system and water resources, rather than as isolated projects. It also calls for a "Data Center Energy Justice Linkage Fund," financed by an assessment on facilities, to support communities most affected by energy insecurity and environmental harm, ensuring public benefit in return for substantial tax advantages.