Massachusetts is beginning to tighten power requirements for large data centers. Governor Maura Healey signed an executive order requiring data centers with peak electricity demand exceeding 25 megawatts to secure their own power sources and ensure compliance with the state’s clean energy standards.
Projects over 25 megawatts are restricted.
Under the new regulations, such data centers should ideally build their own clean power sources within the campus. If on-site generation is not possible, companies must fund new nearby power projects or contribute to a special fund that protects residents' electricity rates.
The state government later clarified that data centers must meet 100% of their electricity demand with clean energy, rather than merely complying with the minimum clean energy比例 applicable to the general industry. This requirement is significantly higher than Massachusetts’ current general standards.
Pause tax incentive application
To allow time for regulators to implement the policy, Massachusetts has paused acceptance of applications for sales tax exemptions on data centers. This tax incentive only took effect last month.
The executive order also requires local communities to avoid signing non-disclosure agreements with project developers to increase transparency in the data center project approval process.
Multiple states are simultaneously tightening expansion.
As concerns over grid stress, land use, and energy costs intensify, several U.S. states have recently tightened restrictions on data centers. Massachusetts has become the third state to act within the past three months.
Among these, in August, Texas Governor Greg Abbott announced that all newly constructed data centers in the state must undergo audits by the Public Utility Commission and the grid operator ERCOT. In July, the Governor of New York halted the construction of new data centers with a capacity of 50 megawatts or more.
These policy changes come at a time when market attention is growing toward the electricity consumption issues of AI infrastructure. As public sentiment shifts toward caution, the tech industry is beginning to organize lobbying efforts and policy responses.