Massachusetts hits data centers with new clean power rules

Massachusetts has introduced new regulations for data centers, compelling developers to generate clean power or contribute to a ratepayer protection fund. This mandate targets data centers exceeding 25 megawatts of peak demand and requires them to comply with the state's clean energy standards. Governor Maura Healey's executive order is a response to growing public opposition to data centers, as politicians aim to demonstrate their commitment to environmental concerns.

Under the new rules, data centers can either produce their own clean power or fund the construction of new generation facilities nearby. Alternatively, they may contribute to a ratepayer protection fund. Massachusetts has also instructed communities to refrain from signing non-disclosure agreements with data center operators. The governor has temporarily halted applications for a data center sales tax exemption that had just begun.

While the commitment to clean power may not be as stringent as it initially appears, data centers must still meet the state's clean energy standard, which mandates a growing percentage of power generation from approved sources such as wind, solar, and hydro. By 2030, these sources must account for at least 40% of the total power generation.

Massachusetts joins Texas and New York as states that have recently tightened restrictions on data center development.