Massachusetts begins to tighten power requirements for large data centers. Governor Molly Healey signed an executive order requiring data centers with peak power demands exceeding 25 megawatts to find their own power sources and ensure compliance with the state's clean energy standards.
Projects above 25 megawatts are restricted.
According to the new regulations, it is preferable for such data centers to build their own clean power sources within the park. If on-site power generation is not possible, enterprises are required to fund new power generation projects in the vicinity or contribute to a special fund designed to protect residents' electricity costs.
The state government subsequently clarified that the data center must not only meet the minimum clean energy ratio applicable to general industries, but also cover 100% of its electricity demand with clean energy. This requirement is significantly higher than the current general standards in Massachusetts.
Suspension of tax incentive applications
To give regulatory authorities time to implement the requirements, Massachusetts has suspended the acceptance of applications for data center sales tax exemptions. This tax incentive only came into effect last month.
The executive order also requires local communities to avoid signing confidentiality agreements with project parties in order to increase transparency in the approval process of data center projects.
Multiple states simultaneously tighten expansion policies
As the pressures on the power grid, land use, and energy costs intensify, several states in the United States have gradually tightened regulations on data centers in recent months. Massachusetts has become the third state to take action in the past three months.
In August of this year, Texas Governor Greg Abbott announced that all newly built data centers in the state must undergo audits by the Public Utilities Commission and the grid operator ERCOT. In July, the governor of New York State halted the construction of new data centers with a capacity of 50 megawatts or more.
These policy changes come at a time when market attention to the power consumption issues of AI infrastructure is increasing. As public attitudes become more cautious, the tech industry has also begun to organize lobbying efforts and policy responses.
