Massachusetts hits data centers with new clean power rules

Summarized from techcrunch.com


Massachusetts has enacted a new executive order mandating that data centers with a peak demand exceeding 25 megawatts must supply their own clean power or contribute to a ratepayer protection fund. Governor Maura Healey’s directive emphasizes the preference for on-site clean energy generation, but alternatively allows data centers to finance nearby clean energy projects or pay into the fund if they cannot meet the clean energy requirement directly. This order also instructs communities to refrain from signing non-disclosure agreements and temporarily halts applications for a recently introduced data center sales tax exemption to facilitate the implementation of these regulations.

The state’s clean energy standard, which is reinforced by the executive order, obligates data centers to fulfill 100% of their electricity demand with clean energy sources, surpassing the baseline state law that mandates a gradually increasing proportion of power from approved sources such as wind, solar, and hydro. Massachusetts joins Texas and New York, which have recently implemented measures to curtail data center development amid growing public opposition. In response, the technology industry, including a pro-AI super PAC backed by notable figures, is initiating advertising campaigns aimed at influencing voter sentiment in key states ahead of upcoming elections. Source