Massachusetts has ordered developers of data centers with peak demand above 25 megawatts to bring new clean power to the grid or pay into a ratepayer protection fund. The governor’s office says covered facilities must match 100% of their electricity demand with clean generation, going beyond the state’s general annual clean-energy percentage.
Governor Maura Healey’s executive order prefers power generated on site. Developers that cannot do that must support new generation nearby or contribute to the protection fund so households and other customers do not absorb infrastructure costs. The order also tells communities to avoid nondisclosure agreements when negotiating projects.
Applications for a recently introduced data-center sales-tax exemption are paused while regulators establish the new process. The state’s broader clean-energy standard recognizes sources including wind, solar and hydro, with required shares that rise over time.
Massachusetts joins Texas and New York in tightening oversight of large data-center projects as electricity demand and public opposition grow. The mandate raises the cost and planning burden for new AI infrastructure, but its effect will depend on implementation details, the availability of additional clean generation and how regulators calculate compliance.