Massachusetts has tightened the conditions for the development of new data centers and will require facilities with a peak demand exceeding 25 MW to cover 100% of their annual consumption with clean energy.
The measure was formalized through Executive Order 658 , signed by Governor Maura Healey, and establishes that projects must demonstrate compliance with that obligation before obtaining state permits.
The scheme offers two options. Developers can either guarantee sufficient clean energy supply to cover their entire demand or, if they cannot fully meet this requirement, they must make payments to a Consumer Protection Fund , whose objective is to mitigate the impact of new consumption on electricity rates.
“Data centers can afford their own clean energy and infrastructure, and we will make sure that they do,” said Rebecca Tepper, Massachusetts Secretary of Energy and Environmental Affairs.
The new framework is based on the policy presented by the state administration in June 2026, which already stated that data centers should provide or finance enough clean generation to cover 100% of their demand, prioritizing on-site supply where possible.
The energy used must meet the eligibility criteria of the Massachusetts Clean Energy Standard .
The Massachusetts Department of Environmental Protection must define by December 31, 2026, the alternative payment mechanism for projects that do not meet the required level of clean supply.
In addition, the Department of Public Utilities will develop specific rates for large loads with the aim of preventing other consumers from ultimately financing network expansions or the infrastructure needed to supply these projects.
The order also incorporates the assessment of greenhouse gas emissions from data centers within the state's Clean Energy and Climate Plan.
Added to this are requirements related to the protection of water and atmospheric resources and an additional political condition: no project may obtain state authorization without the support of the community where it intends to be installed .
Healey summarized that criterion with a straightforward definition: "Unless a community says yes to a data center, we say no."
More pressure on the energy model of data centers
The measure comes amid strong growth in electricity demand associated with artificial intelligence and data centers in the United States.
According to the Electric Power Research Institute, these types of facilities could account for up to 9% of the country's electricity generation in 2030 , compared to approximately 4% of the total load in 2023.
This increase is forcing states to review how the costs of new generation, transmission, and distribution needed to supply large consumption are allocated.
Massachusetts is seeking to ensure that this expansion does not automatically translate into higher costs for the rest of the users.
The new regulations also raise the bar compared to the state's general clean energy standard. While the state scheme mandates an increasing share of eligible sources, data centers covered by the order will be required to meet their entire annual energy demand with clean energy.
This approach complements other recent measures taken in the United States to address the rapid growth of these projects. Texas has moved forward with new audits for large data centers, while New York has temporarily halted developments of 50 MW or more.
Meanwhile, the debate is beginning to spread to other markets. Australia is preparing a framework that links the growth of data centers with new renewable energy generation, and Spain is analyzing renewable energy consumption requirements with greater hourly granularity.
With Executive Order 658, Massachusetts seeks to go a step further: conditioning the entry of new loads of more than 25 MW on clean energy backup, limiting the transfer of costs to other consumers, and forcing developers to assume a greater part of the infrastructure they need to operate.