Mass. data centers need approval before getting a permit following new executive order

BOSTON — Gov. Maura Healey is now putting Massachusetts among a growing number of states taking a closer look at how data centers are built and who gets a say in where they go.

For years, Massachusetts has promoted itself as a place for the technology industry to grow, including data centers powering the AI boom.

As those projects have gotten bigger, so have the concerns about their impact on electricity costs, the environment, and local communities.

Back in February, Gov. Healey said data centers need to power themselves, pay for it, “and do it in a way that doesn’t harm residents.”

More than six months later, Healey said she’s putting local communities in control.

On Tuesday, she signed an executive order requiring local approval for new data center infrastructure.

“Unless a community says yes to a data center, we’re saying no,” Healey said.

The move comes after the Governor first paused new applications for the state’s data center sales tax exemption in June, saying stronger protections were needed.

That tax break was created by a law Healey signed in 2024, giving qualified data centers a potential 20-year sales tax exemption.

On Tuesday, Healey addressed that, saying she signed that package but did not include the tax exemption herself.

“As I’ve seen things, I just didn’t think that it was right for that sales tax exemption to apply in the midst of what we’re dealing with right now, which is a lot of concern across communities in Massachusetts and this country about the impact data centers are having or could have,” Gov. Healey said.

Tuesday’s executive order also requires developers to prove that they’re not going to harm the environments or communities where they want to build. They also have to provide their own clean energy on day one, and if they can’t, they have to pay ratepayers for the energy they consume until their own supply is in place.

Republican candidate for Governor, Mike Minogue agrees that Massachusetts is in an energy crisis.

“I would always let a local community have input, but in reality, today, we’re seeing more override votes than ever before just for operations,” Minogue said. “What I want to do is give more money back to the towns and cities if they will reduce the stretch codes, which destroys the opportunities for many builders and developers.”

A proposed data center in Westfield has yet to seek permits from state agencies. Should the project come to the state, the developer would need to present a Community Benefits Agreement and its plans to meet the state’s water and energy expectations.

The state currently has about 50 data centers, meaning Tuesday’s announcement could help determine how many more Massachusetts is willing to take on.

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