Local governments now play a central role in that process. A project must secure approval from its host community and establish a community benefits agreement that meets state standards before state permitting agencies will move it forward.
“Unless a community says yes to a data center, we are saying no,” Healey said. “We’re giving communities a voice and laying out the rules for what needs to happen in Massachusetts.”
The state is also placing new conditions on how large data centers meet their power needs. Developers are expected to provide or procure enough clean electricity for their projects while covering the cost of the energy infrastructure needed to support that demand.
If those electricity costs are not fully covered by the company, the project could be required to contribute to a new Ratepayer Protection Fund. Money collected through the fund would be returned to electricity customers.
“Data centers can afford to pay for their own clean energy and infrastructure, and we’re going to make sure they do,” Energy and Environmental Affairs Secretary Rebecca Tepper said. “We’ve seen ratepayers in other states foot the bill for data centers. That won’t be acceptable in Massachusetts.”
The framework also extends beyond electricity use. Data center proposals are expected to address water availability and quality, wastewater capacity, air emissions and other environmental and public health considerations. Developers are also expected to create benefits for surrounding communities through jobs and other investments.
Healey’s order additionally prohibits non-disclosure agreements between state agencies and data center companies during the approval process, part of an effort to make permitting more transparent.
The new rules tie those energy, environmental and community requirements directly to state permitting for the largest projects. Data centers above the 25-megawatt threshold will have to demonstrate compliance before receiving state approval to proceed.
This analysis is based on reporting from Mass.gov.
Image courtesy of Boston Women's Heritage Trail.
This article was generated with AI assistance and reviewed for accuracy and quality.
