Massachusetts signs clean-power order for large data centers

Massachusetts Gov. Maura Healey has signed an executive order imposing new clean energy requirements on large data centers in the state. Under the order, developers of data centers with peak demand exceeding 25 megawatts must supply their own clean power or pay into a ratepayer protection fund.

The state prefers that clean energy be generated on-site. If that is not possible, developers will need to fund construction of new generation nearby or contribute to the protection fund. The governor's office clarified that data centers will be required to meet 100% of their electricity demand with clean energy, a stricter threshold than the state's general clean energy standard.

To give regulators time to implement the new rules, Massachusetts has paused applications for a data center sales tax exemption that took effect in August 2026. The executive order also encourages communities to avoid signing non-disclosure agreements in data center negotiations.

Massachusetts becomes the third state in three months to restrict data center development. In August, Texas Gov. Greg Abbott announced that new data centers in the state must undergo audits by the public utility commission and grid operator ERCOT. In July, New York's governor halted construction of new data centers of 50 megawatts or larger.