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Massachusetts Mandates Clean Power for New Data Centers Over 25 MW
Key points
- New data centers over 25 MW must provide 100% clean power.
- Developers can generate clean power onsite or fund new generation.
- Massachusetts paused data center sales tax exemptions.
- This follows similar restrictions in Texas and New York.
New Clean Power Requirements
Massachusetts Governor Maura Healey has signed an executive order mandating that data centers exceeding 25 megawatts of peak demand must secure their own clean power supply. This requirement specifies that these facilities must meet 100% of their electricity demand with clean energy generation, surpassing the state's general clean energy standard for other industries.
Compliance Options for Developers
Data center developers have several options to comply with the new mandate. They can generate the required clean power onsite, fund the construction of new clean energy generation facilities nearby, or pay into a ratepayer protection fund. The state prefers onsite generation of clean power.
Additional State Actions
The executive order also directs communities to avoid signing non-disclosure agreements related to data center projects. To allow regulators time to implement these new restrictions, the governor has paused applications for a data center sales tax exemption that recently went into effect.
Broader Regulatory Trend
Massachusetts is the third state in as many months to introduce new regulations for data centers. In August, Texas mandated audits for all new data centers by the public utility commission and ERCOT. In July, New York halted construction of new data centers 50 megawatts or larger. This indicates a growing trend of states imposing stricter controls on data center development.
✨ This summary was generated by AI from the outlets' reporting listed below. It is not independently verified and may contain errors — check the original sources. How BrevFeed works →
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Reporting from
Massachusetts Governor Maura Healey issued an executive order requiring new data centers larger than 25 megawatts to provide 100% clean power or contribute to a ratepayer protection fund. This move makes Massachusetts the third state in recent months to impose new restrictions on data center development, reflecting a broader trend of increased scrutiny on the industry.