Massachusetts has become the latest state to force data centers to bring their own power, but with a twist. A new executive order from Governor Maura Healey requires developers of data centers larger than 25 megawatts of peak demand to provide clean power or pay into a ratepayer protection fund.
Under the order, data centers must meet the state's clean energy standard, which means a portion of their power must come from approved sources like wind, solar, and hydro. For example, in 2030 those sources must contribute at least 40% of total power, with the requirement increasing over time. Healey would prefer that the clean power be generated onsite; otherwise, developers must fund new generation nearby or pay into the ratepayer protection fund.
The order also directs communities to avoid signing non-disclosure agreements. To give regulators time to implement the new restrictions, the governor is pausing applications for a data center sales tax exemption that went into effect last month.
Massachusetts becomes the third state in as many months to rein in data center development. In August, Texas Governor Greg Abbott announced that all new data centers in the state would need to submit to audits by the public utility commission and the grid operator, ERCOT. In July, New York's governor stopped construction of new data centers of 50 megawatts or larger.