Massachusetts state regulations require large new data centers to either operate on 100% clean energy or contribute to a fund designed to mitigate electricity cost increases for consumers.

Massachusetts Governor Maura Healey recently announced an executive order and administrative framework establishing new requirements for data center development in the state. Under Executive Order No. 658, proposed data center projects with a peak electricity demand exceeding 25 megawatts are required to demonstrate that they meet specific energy and environmental standards before receiving state permitsmass.govmass.govNo. 658: Establishing Requirements for Responsible Data Center Development and...mass.govmass.govGovernor Healey: No Data Centers Without Local Approval.

A central component of this policy is the 'Bring Your Own Clean Energy' requirement, which stipulates that developers must either directly procure or supply 100% clean energy to meet the project's loadmass.govmass.govHealeycryptobriefing.comcryptobriefing.comMassachusetts mandates clean energy for new data centers. If a developer is unable or chooses not to utilize renewable energy to fully meet these electricity needs, the framework allows for an alternative compliance payment mechanism. Funds collected through this mechanism are directed to a Ratepayer Protection Fund, which is designed to mitigate electricity supply costs for consumers throughout the statemass.govmass.govNo. 658: Establishing Requirements for Responsible Data Center Development and...bloomberg.combloomberg.comMassachusetts Will Require New Data Centers to Use Clean Energyagentlocker.aiagentlocker.aiMassachusetts Requires Data Centers to Supply Their Own Clean Energy.

The administration has characterized these measures as essential for ensuring that the rapid growth of data center infrastructure aligns with the state's climate goals while maintaining energy reliability and affordability for residentsmass.govmass.govHealeymass.govmass.govGovernor Healey: No Data Centers Without Local Approval.