Massachusetts Orders Large Data Centers to Use 100% Clean Power
Massachusetts orders data centers above 25 MW to cover all electricity with clean power, fund nearby generation or protect utility ratepayers from added costs.
Summary
Massachusetts Gov. Maura Healey’s executive order, detailed September 9, 2026, requires data centers exceeding 25 megawatts of peak demand to supply power meeting state clean energy rules. Developers are encouraged to generate it onsite. Otherwise, they must finance new nearby generation or pay into a ratepayer protection fund. Although Massachusetts’ annual standard counts wind, solar and hydro and reaches at least 40% in 2030 before rising, the governor’s office clarified that covered data centers must match 100% of electricity demand with clean generation. Communities are directed to avoid nondisclosure agreements. Applications for the data center sales tax exemption introduced in August are paused while regulators implement the restrictions.
Massachusetts is the third state in three months to curb data center growth amid rising public opposition, reversing years when tech companies and developers received location incentives. Texas Gov. Greg Abbott said in August that every new data center must accept audits by the Public Utility Commission and grid operator ERCOT. New York’s governor halted construction in July of new facilities at least 50 megawatts. The industry is responding politically: pro-AI super PAC Leading the Future, funded by Marc Andreessen, Ben Horowitz and Greg Brockman, is buying battleground state ads before the midterm elections.
Positives
- Data centers above 25 megawatts must match 100% of their electricity demand with clean generation.
- Onsite clean generation is preferred, encouraging developers to add power where facilities consume it.
- Developers unable to generate onsite must finance nearby capacity or contribute to a ratepayer protection fund.
- Massachusetts communities are directed to avoid nondisclosure agreements when negotiating data center projects.
- Wind, solar and hydro qualify under a state clean energy standard that rises after reaching 40% in 2030.
Risks & concerns
- The 100% clean electricity obligation is substantially stricter than the statewide standard of at least 40% in 2030.
- Applications for Massachusetts’ data center sales tax exemption are paused only one month after it took effect.
- New York halted data center construction at 50 megawatts or more, while Texas imposed audits on every new facility.
- Three states tightened data center oversight within three months as public opposition replaced earlier competition through incentives.
- Leading the Future is buying battleground state ads, signaling an escalating political fight over AI infrastructure before the midterms.