As 25 Investigates first reported in November, Massachusetts is on track to land its first hyperscale artificial intelligence data center, part of a broader push by lawmakers to attract big tech development through tax incentives.
But as AI data centers expand, concerns are growing about rising utility costs, and whether residential ratepayers could end up footing the bill.
U.S. Senator Ed Markey says safeguards are needed now.
“So, we have to make sure that any increase in electricity rates is not passed on to residential consumers. And we have to make sure the pollution isn’t injected into residential neighborhoods,” Markey told Boston 25’s Kerry Kavanaugh.
“Across our nation, electricity rate payers are already seeing skyrocketing bills due to AI data centers being put in their neighborhoods.”
Markey says the massive facilities drive up energy demand, which in turn raises costs for ratepayers.
In a November letter to federal regulators, Markey wrote in part, “We urge you to protect residential ratepayers over corporate profits.”
The letter was sent to the Federal Energy Regulatory Commission as Massachusetts prepares for its first hyperscale AI data center.
The planned hyperscale facility — a $4 billion project spanning about 120 acres — is slated for Westfield. Supporters say it would become the city’s largest taxpayer and bring at least 100 good-paying jobs.
However, AI data centers consume enormous amounts of electricity and water, prompting Markey and others to call for federal protections before projects come online.
Federal regulators have not responded to Markey’s letter.
But it appears President Donald Trump shares a similar concern.
“Tonight, I am pleased to announce I have negotiated the new ratepayer protection pledge,” said President Trump during his State of the Union address February 24th.
The President said major tech companies will have an obligation to provide for their own power needs around data centers so that energy prices don’t go up. The President claimed rates could even go down.
According to the Data Center Map website, Massachusetts currently has 50 data centers, but the rise of artificial intelligence has increased demand for larger, hyperscale facilities.
During a late February event, Governor Maura Healey announced a partnership with Google to help Massachusetts residents develop A.I. skills.
She says A.I. data centers are necessary but added “Data centers--they just need to power themselves and they need to pay for it. It’s pretty simple.”
Data Center Coalition representative Dan DiOrio told 25 Investigates the industry would pay its share.
“The data center industry is committed to paying our full cost of service for electricity,” DiOrio said.
But critics say the impact on communities tells a different story.
Tristan Thomas of Alternatives for Community and Environment says hyperscale centers nationwide have been linked to higher electric bills.
“We need to protect ratepayers and community members,” Thomas said.
“We need these AI centers to be good neighbors,” Markey said.
This is a developing story. Check back for updates as more information becomes available.
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