Massachusetts Data Center Rules Tightened

Massachusetts Governor Maura Healey has signed an executive order establishing new regulations for large data center projects, requiring community approval and clean energy financing or payments before state permitting can proceed. The order, signed on Tuesday, September 8, 2026, targets proposed data centers with a peak electricity demand exceeding 25 megawatts. Under the new framework, developers must secure formal community benefits agreements with their host communities. State agencies are also barred from entering into nondisclosure agreements with data center developers, aiming to ensure a more transparent approval process. The executive order directs state agencies to address potential impacts on water supplies, wastewater, stormwater, air quality, and public health. Developers of qualifying projects will be required to provide or fund clean electricity to meet their operational needs. If generating new clean power onsite or funding local generation is not feasible, they must contribute to a newly established Ratepayer Protection Fund. This fund is intended to offset potential increases in electricity costs for other customers.