Massachusetts Governor Maura Healey has signed an executive order that would require data centers larger than 25 megawatts of peak demand to bring their own power and guarantee that it meets the state's clean energy standards — with a twist: unlike other industries, data centers will be required to meet 100% of their electricity demand with clean energy generation, far above the state's general 40% target by 2030.
Under the order, data center developers must either generate clean power onsite, fund the construction of new generation nearby, or pay into a ratepayer protection fund. The governor also paused applications for a data center sales tax exemption that went into effect last month, and directed communities to avoid signing non-disclosure agreements related to data center projects.
Massachusetts is the third state in as many months to impose new restrictions on data center development. In August, Texas Governor Greg Abbott announced that all new data centers would need to submit to audits by the public utility commission and ERCOT, the state grid operator. In July, New York's governor halted construction of new data centers 50 megawatts or larger.
The wave of restrictions reflects a rapid shift in public sentiment against data centers, which were previously showered with incentives by state governments competing for tech investment. Pro-AI super PAC Leading the Future, funded by Marc Andreessen, Ben Horowitz, and Greg Brockman, is now buying ads in battleground states ahead of midterm elections to counter the backlash.
