Massachusetts orders large data centers to bring clean power

In short: Massachusetts issued new rules that make big new data centers supply clean electricity or pay into a state fund.

What happened

Massachusetts Gov. Maura Healey signed an executive order aimed at large new data centers. Data centers are buildings full of computers that run online services, like streaming, search, and many AI tools.

The order applies to projects larger than 25 megawatts of peak demand, which is a measure of how much power they can draw at their busiest (think of it like the maximum load on a home electrical panel, but for a huge building). Developers must “bring their own” power and make sure it meets Massachusetts clean energy requirements.

Healey said the state would prefer the clean power be generated on site. If not, developers would need to pay for new nearby power generation or pay into a “ratepayer protection fund,” which is meant to help protect regular electricity customers from higher costs.

The order also tells local communities to avoid signing non-disclosure agreements, which can keep details secret during negotiations. Massachusetts is also pausing applications for a data center sales tax exemption that started last month, to give regulators time to put the new restrictions in place.

The clean power standard does not mean 100% renewable electricity right away. The order points to Massachusetts law, which sets targets that rise over time, including at least 40% from sources like wind, solar, and hydro by 2030.

Why it matters

States are paying closer attention to data centers because these facilities can use a lot of electricity and can affect local power bills and planning. Massachusetts is the third state in about three months to tighten rules, following Texas and New York.

Source: TechCrunch AI