Massachusetts Governor Maura Healey signed an executive order requiring data centers with peak demand exceeding 25 megawatts to cover 100% of their electricity consumption with clean energy or pay into a ratepayer protection fund. The move comes amid a broader national trend, with New York and Texas also tightening restrictions due to grid pressure and rising electricity costs. The tech industry is pushing back, with a major super PAC funding ads ahead of the midterm elections.
Massachusetts clean energy mandate
- ▪Massachusetts Governor Maura Healey signed an executive order requiring data centers with peak demand exceeding 25 megawatts to provide their own clean energy.
- ▪The Massachusetts clean energy standard under state law requires renewable sources like wind, solar, and hydro to account for at least 40% of the state's total electricity generation by 2030.
- ▪Under the executive order signed by Governor Maura Healey, data centers in Massachusetts with peak demand exceeding 25 megawatts must cover 100% of their electricity consumption with clean generation.
State data center restrictions
- ▪In August 2026, Texas Governor Greg Abbott announced that all new data centers in Texas would be reviewed and audited by the Public Utility Commission and the ERCOT grid operator.
- ▪In July 2026, the governor of New York suspended construction of new data centers with a capacity of 50 megawatts or more.
- ▪The executive order signed by Massachusetts Governor Maura Healey directs local communities to avoid signing non-disclosure agreements when approving data center projects.
- ▪Massachusetts suspended applications for a data center sales tax exemption that went into effect in August 2026 to allow regulators time to implement new restrictions.
Grid pressure concerns
- ▪States are tightening requirements on data centers due to growing pressure on power grids and concerns about rising electricity costs.
- ▪The growing technology boom is forcing states to rethink who pays for the electricity and infrastructure needed to power massive computing facilities.
Ratepayer protection fund
- ▪If data center owners in Massachusetts cannot generate clean electricity themselves, they must fund the construction of new generation nearby or pay into a ratepayer protection fund.
- ▪The ratepayer protection fund in Massachusetts is designed to protect electricity consumers from potential rate increases associated with expanding energy infrastructure.
Tech industry political pushback
- ▪The political action committee funded by Marc Andreessen, Ben Horowitz, and Greg Brockman, referred to as 'Leading for Tomorrow' or 'Leading the Future', is purchasing advertising to influence voters in key states ahead of the midterm elections.
- ▪The technology industry opposes tighter restrictions on data centers, which could increase the cost of building these facilities.
Debatable claims
- ▪Massachusetts should suspend sales tax exemptions for data centers
- ▪Massachusetts should require large data centers to provide their own clean energy
- ▪Local governments should refuse non-disclosure agreements when negotiating data center projects
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