Massachusetts has mandated that data centers exceeding 25 megawatts must use clean energy or contribute to a ratepayer protection fund. The new state rule, issued by Governor Maura Healey, marks a significant shift in state policy toward data centers.
The executive order requires data centers with more than 25 megawatts of peak demand to ensure their power comes from clean sources or fund nearby clean energy generation.
If they fail to meet these requirements, they will have to pay into a ratepayer protection fund. This move is part of a broader trend of states imposing stricter regulations on data center development.
Massachusetts is also directing communities to avoid signing non-disclosure agreements, according to the executive order. To give regulators time to implement the new restrictions, the governor is pausing applications for a data center sales tax exemption that went into effect last month.
Healey emphasized that data centers must meet the state's clean energy standard, which requires 100% of electricity demand to be met with clean energy generation.
"Data centers must meet the Massachusetts clean energy standard enshrined in state law," said Healey. The state's clean energy standard dictates that industry generate a portion of its power using approved sources like wind, solar, and hydro. In 2030, those sources must contribute at least 40% of the total, with the requirement increasing over time.
With public sentiment shifting against data centers, the tech industry is starting to push back.
Pro-AI super PAC Leading the Future, funded by Marc Andreessen, Ben Horowitz, and Greg Brockman, is buying ads to sway voters in battleground states ahead of midterm elections.
The governor’s office clarified that the executive order will require data centers to meet 100% of its electricity demand with clean energy generation.
Source: techcrunch
