Massachusetts has just become the latest state to crack down on data centers, with a new mandate that requires them to bring their own clean power or pay into a fund to protect ratepayers. This means that any data center larger than 25 megawatts will have to generate its own clean energy, either on-site or by funding new generation nearby. If they can’t do that, they’ll have to pay into the ratepayer protection fund.
The state’s governor, Maura Healey, has also put a pause on applications for a data center sales tax exemption, which will give regulators time to implement the new restrictions. Healey’s order also directs communities to avoid signing non-disclosure agreements, which is a big deal because it means that data centers won’t be able to keep their plans under wraps. The goal is to make sure that data centers are meeting the state’s clean energy standards, which require them to generate at least 40% of their power from approved sources like wind, solar, and hydro by 2030.
This move by Massachusetts is just the latest example of states pushing back against data centers. Texas and New York have also recently introduced new restrictions, and it’s clear that public sentiment is shifting against these massive energy-guzzlers. The tech industry is starting to fight back, with pro-AI groups buying ads to sway voters ahead of midterm elections. It’ll be interesting to see how this all plays out, but for now, it’s clear that data centers are facing a lot more scrutiny than they used to.