Massachusetts hits data centers with new clean power rules

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Massachusetts Governor Maura Healey signed an executive order mandating that data centers over 25 megawatts of peak demand supply clean power or compensate through a ratepayer protection fund. Healey's preference is onsite clean generation; if not feasible, developers must fund nearby clean generation or pay into the fund. The order also directs communities to avoid signing NDAs with data center developers and pauses applications for a data center sales tax exemption that took effect in August. The clean power requirement is tied to Massachusetts state law: approved sources (wind, solar, hydro) must supply at least 40% of power by 2030, rising over time. This is not a 100% clean mandate. Massachusetts becomes the third state in two months to rein in data center development. Texas Gov. Abbott's August order required new data centers to submit to ERCOT audits; New York's July action halted new data centers 50 megawatts or larger. The pattern reflects public opposition to energy demand and community disruption now translating into legislation and executive action. The AI industry is responding: Leading the Future — a pro-AI PAC backed by Marc Andreessen, Ben Horowitz, and Greg Brockman — is running voter ads in battleground states ahead of midterm elections to counter the trend.