New Clean Energy Regulation for Data Centers from Massachusetts
Massachusetts Governor Maura Healey signed an executive order requiring data centers over 25 megawatts to provide clean energy or pay into a consumer protection fund.
Massachusetts has become the latest state to introduce a new clean energy mandate targeting data centers amid rising energy needs and public pressure. The executive order signed by Governor Maura Healey requires large facilities to either provide their own clean energy or contribute to a ratepayer protection fund.
Details of the New Regulation
The new practice implemented in Massachusetts fundamentally changes the policies regarding the energy consumption of large-scale technology investments.
The executive order signed by Governor Maura Healey requires data centers with a peak power of 25 megawatts and above to generate or procure their own energy.
Clean Energy Standards and Rates
According to the new rules, the energy to be procured by data centers must be fully compliant with the state's clean energy standards.
This ratio, which must be obtained from approved sources such as wind, solar, and hydroelectric, will be increased to at least 40 percent by 2030.
Tax Exemptions and Local Governments
Within the scope of the regulation, applications for data center sales tax exemptions were also temporarily suspended in order to enforce the restrictions.
On the other hand, the Massachusetts administration is guiding local communities and municipalities to avoid signing confidentiality agreements.
Nationwide Increased Audits
Massachusetts went on record as the third state in recent months to place data center investments and development under strict scrutiny.
Similar steps had previously been taken in the states of Texas and New York, increasing political and public scrutiny on the sector.