Massachusetts Governor Maura Healey signed an executive order barring state permitting agencies from advancing data center projects that lack local municipal approval. The directive establishes one of the nation’s most comprehensive regulatory frameworks for energy-intensive technology infrastructure, requiring developers to secure local community agreements, supply their own clean energy, and protect local water resources.
Governor Healey’s Executive Order Mandates Local Approval
Under the executive order issued by Governor Healey, state permitting agencies will not advance any proposed data center project unless the host municipality explicitly grants local approval, according to an official announcement from Mass.gov. Healey stated that the policy ensures community voices are prioritized, emphasizing that unless a municipality consents, the state will halt development.
In addition to local authorization, the framework mandates that data center developers establish a community benefits agreement meeting state standards before entering the state permitting process. Furthermore, the executive order explicitly prohibits the use of non-disclosure agreements between state agencies and data center developers, ensuring full transparency throughout the public review process.
Clean Energy Mandates and Ratepayer Protection Fund
The state framework targets energy consumption and grid reliability by requiring data centers with a peak electricity demand exceeding 25 megawatts to demonstrate full compliance with environmental and infrastructure rules. Energy and Environmental Affairs Secretary Rebecca Tepper noted that data centers must invest directly in Massachusetts by bringing new clean energy supplies and paying for the physical grid infrastructure required to deliver it.
To shield everyday consumers from potential utility price spikes driven by massive power draws, the executive order establishes a dedicated Ratepayer Protection Fund. Under this mechanism, data centers that fail to supply their own dedicated clean energy must pay a fee directly into the fund, which will be returned to ratepayers. Trish Fields of ACT stated that new high-energy users must help meet their own demand so existing residents do not bear higher costs or grid strain.
Environmental Safeguards and Regional Context
Beyond electrical grid impacts, the framework requires developers to submit plans protecting surrounding water systems, local environments, and public health. Labor leaders backed the announcement, with Massachusetts AFL-CIO President Chrissy Lynch highlighting the role of union members in building the data centers that are the foundation for digital infrastructure.
Massachusetts is the third state in as many months to implement new restrictions on data center developments, reflecting growing legislative and executive scrutiny over the rapid expansion of infrastructure across the United States.
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