Massachusetts data center developers must now secure local approval before advancing projects through state permitting. Gov. Maura Healey signed an executive order on September 8 establishing this requirement, effectively giving towns and cities veto power over proposed facilities.
"Unless a community says yes to a data center, we're saying no," Healey said at a State House press conference. The order mandates that developers negotiate community benefits agreements with host municipalities first, with those agreements subject to state standards before any state permitting process begins.
The new framework applies to projects with maximum electricity demand exceeding 25 megawatts. It also prohibits non-disclosure agreements between state agencies and data center companies, intended to keep the review process transparent to residents.
Local Opposition Already Evident
Six Massachusetts communities have already taken action on data centers. Shutesbury and Holyoke have imposed outright bans, while Westfield implemented a moratorium. Easthampton, Northampton, and Greenfield are weighing temporary bans of their own.
Local concerns have intensified following problems in Lowell, where residents near the Markley Group facility reported electric bills climbing more than 50 percent. Residents also documented exhaust reaching bedrooms and noise disrupting sleep. In April, Lowell residents sued the state Department of Environmental Protection over an air quality plan to add generators at the site; a Middlesex Superior Court judge recently blocked four of those generators from being installed.
Clean Energy Requirements
Data centers over 25 megawatts must generate their own power and meet the state's clean energy standards. The executive order requires such facilities to source 100 percent of their electricity from clean generation—a significantly higher bar than the state's general clean energy standard.
If onsite generation is not feasible, facilities can fund new generation nearby or pay into a newly created Ratepayer Protection Fund. The state Department of Environmental Protection has until December 31 to establish an alternative compliance payment mechanism for centers that cannot meet clean electricity requirements.
Healey emphasized that data centers cannot strain the grid for other residents. "We can't have data centers coming in and taking energy away from the rest of us," she said.
Broader State and National Trends
Massachusetts joins other states tightening data center regulations. Texas Governor Greg Abbott implemented requirements in August for new facilities to undergo audits by the state utility regulator and grid operator ERCOT. New York paused construction of data centers 50 megawatts or larger in July. According to the National Conference of State Legislatures, fifteen states are considering moratoriums.
In June, Healey paused applications for a 20-year sales and use tax exemption on qualified data centers. She attributed the exemption to the Legislature's economic development package signed in 2024, distancing her administration from the incentive.
