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3d ago

Healey Orders Local Approval and Clean-Power Rules for New Data Centers

Healey says the order will shield ratepayers from higher bills, safeguard local health, force developers to secure clean power before permits are granted.

Drone image of the Markley Group data center alongside a residential neighborhood on May 12, 2026 in Lowell.
Boston, Massachusetts, USA - February 7, 2024: The Massachusetts State House, also known as the Massachusetts Statehouse or the New State House, is the state capitol and seat of government for the Commonwealth of Massachusetts, located in the Beacon Hill neighborhood of Boston. The original wood dome was covered with copper in 1802 by Paul Revere's Revere Copper Company. The dome was first painted gray and then light yellow before being gilded with gold leaf in 1874. The dome was re-gilded in 1969, and again 1997 in 23k gold. The dome is topped with a gilded, wooden pine cone, symbolizing both the importance of Boston's lumber industry during early colonial times and of the state of Maine, which was a district of the Commonwealth when the Bulfinch section of the building was completed.
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Overview

  • Gov. Maura Healey signed the executive order Tuesday requiring proposed data centers with peak demand above 25 megawatts to win a community benefits agreement from the host city or town before state permitting and banning nondisclosure agreements between developers and state agencies.
  • The order directs the Massachusetts Department of Environmental Protection to create an alternative compliance payment system that funnels fees into a new Ratepayer Protection Fund when developers cannot supply 100 percent clean electricity for their operations.
  • Key implementation steps — including how MassDEP will evaluate community benefit agreements, set water and air protocols, craft ACP mechanics, and handle exemptions — remain to be written and are expected later this year.
  • Reactions are split: labor leaders praised the focus on local jobs and responsible practices, industry lawyers and trade groups warned the requirements will deter developers, and ongoing local litigation such as the Lowell Markley case, where a judge blocked additional diesel generators, underscores community concern.
  • The order follows Healey’s June pause on a data center sales-tax exemption and mirrors recent state actions elsewhere that limit data-center growth, a shift that could keep Massachusetts off the short list for hyperscale AI facilities and push projects to regions with cheaper, more abundant power.