Massachusetts Governor Healey unveiled new regulatory frameworks governing data center siting, energy consumption, and community impact assessments.
On Tuesday, Governor Maura Healey announced new regulations governing prospective data center development in Massachusetts, framing the initiative as a measure to prioritize community involvement. Speaking at a press conference at the Massachusetts State House, Healey said, “We’re putting communities in the driver's seat here and we're laying out the rules so there’s clarity and there’s certainty in data center development.”
Under the new executive order, developers must secure local community support to obtain state permits, which includes establishing a community benefits agreement with the host municipality. The approval process will mandate full transparency, explicitly prohibiting non-disclosure agreements between any state agencies and developers. Additionally, facilities must either generate their own clean energy or contribute to a ratepayer protection fund—a safeguard Healey noted is designed to shield residents from utility bill increases driven by heightened energy consumption.
Developers will also be required to demonstrate that their projects will not harm the environment or local water supplies, while providing tangible community benefits such as job creation. These regulations apply exclusively to new data center developments, meaning they will not affect ongoing legal disputes in municipalities with existing facilities, such as Lowell.
The expansion of artificial intelligence data centers has emerged as one of the few modern issues bridging party lines, demographics, and geography. An NBC News Decision Desk Poll powered by SurveyMonkey, conducted from August 20 through September 1, revealed that 69 percent of respondents oppose building AI data centers in their local area, with 45 percent stating they “strongly oppose” the concept. Neighbors say a Lowell artificial intelligence facility has impacted their quality of life. As nationwide demand for AI infrastructure surges, Massachusetts continues to grapple with balancing the sector’s economic advantages against its environmental footprint.
Proponents highlight that data centers generate high-paying employment, attract capital investment, and bolster the state’s digital infrastructure. Critics counter that the facilities consume vast quantities of electricity and water while generating air and noise pollution. This tension has been particularly visible in Lowell, where the Markley Group invested more than $600 million to convert the former Prince Spaghetti factory into a 14-acre data center campus. The company maintains that the project differs from the hyperscale facilities fueling the current AI boom. Prior to Markley’s 2015 acquisition, the site had remained vacant for nearly two decades. As the campus expands, so does the demand for skilled union labor. Markley reports that approximately half of its available space remains under construction, noting that converting an empty room into a fully operational suite typically requires six to eight months.
Political commentator Sue O'Connell talks about the issues members of both parties are taking with artificial intelligence and data centers. Environmental advocates emphasize that rapid industry growth carries significant tradeoffs. Quentin Good, a policy analyst with Frontier Group, noted that hyperscale data centers require enormous amounts of electricity and raised concerns regarding air and noise pollution in adjacent neighborhoods. Massachusetts currently hosts roughly 50 data centers, the majority situated in Greater Boston.
In 2024, the Massachusetts Legislature approved a tax incentive to stimulate data center development, but Healey pressed pause in June. At that time, she laid out new expectations for future projects, urging developers to protect communities from rising energy costs and address environmental impacts. The updated framework seeks to foster responsible growth while ensuring host municipalities do not shoulder undue burdens. Nevertheless, opposition persists across the state. Lowell and Mansfield have implemented moratoriums on new development, and Holyoke became the first municipality in Massachusetts to enact a citywide ban. As artificial intelligence continues to drive demand for computing power, state leaders remain tasked with striking a delicate balance between encouraging industry expansion and safeguarding the communities that host these facilities.