Massachusetts Mandates Clean Energy for Data Centers
Massachusetts has set a new standard for data centers in the state. Governor Maura Healey's administration has introduced a framework requiring developers to fund and procure 100% clean energy for their operations. This policy, dubbed 'Bring Your Own Clean Energy,' ensures that the cost of powering these facilities doesn't get passed along to regular electricity customers or strain the state's grid.
The new rules, released on June 25, 2026, halt applications for a 20-year sales and use tax exemption. This exemption was established in 2024 and required data center projects to create at least 100 jobs and commit a minimum $50 million investment. The exemption is now frozen until the state determines adequate ratepayer and environmental protections are in place.
Data center operators must fund all infrastructure costs themselves while prioritizing on-site renewable energy generation. A Ratepayer Protection Fund has been established to collect payments from developers who fail to cover their full energy costs. Community approval through formal community benefits agreements is also required for data center projects with peak demand exceeding 25 megawatts.
The regulations are part of Massachusetts' broader climate commitments, which include a 50% reduction in greenhouse gas emissions by 2030 and net-zero emissions by 2050, both measured against 1990 levels. The state aims to add 10 GW of new renewable energy capacity and 5 GW of energy storage by 2035.