Massachusetts has become the latest state to impose new restrictions on data center development, with Gov. Maura Healey issuing an executive order requiring facilities larger than 25 megawatts to supply their own clean power or contribute to a ratepayer protection fund. The order reflects growing state-level resistance to the rapid expansion of AI-driven data center infrastructure, as public opposition mounts over energy costs and grid strain.
Under the mandate, qualifying data centers must meet 100% of their electricity demand through clean energy sources, exceeding the state’s existing clean energy standard, which currently requires only a portion of power to come from approved sources like wind, solar, and hydro. Developers are encouraged to generate clean power on-site or fund nearby generation projects. The state is also discouraging communities from signing non-disclosure agreements with developers and pausing a recently enacted data center sales tax exemption.
Massachusetts joins Texas and New York, which imposed similar restrictions in August and July respectively, as the third state in recent months to curb data center growth. In response, the AI industry has begun pushing back politically, with the pro-AI super PAC Leading the Future, backed by Marc Andreessen, Ben Horowitz, and Greg Brockman, running ads aimed at influencing voters in battleground states ahead of the midterm elections.
