Massachusetts Sets Clean Power Rules for Large Data Centers

September 10, 2026
Massachusetts will require data centers with more than 25 megawatts of peak demand to match their electricity use with clean energy and limit costs for other ratepayers.

Massachusetts will require data centers with more than 25 megawatts of peak demand to supply or procure enough clean energy to match their electricity use, under a framework published by the Healey administration. Developers can generate power on site, finance new generation nearby, or pay into a fund designed to protect ratepayers.

The state is pausing applications for a data center sales and use tax exemption while regulators implement the requirements. The framework also calls for energy efficiency, participation in demand response programs, water efficient cooling, and measures to limit air pollution and noise.

Developers are expected to disclose information about energy, water, environmental effects, employment, and supply chains, with independent verification. State guidance also advises communities against signing nondisclosure agreements and calls for early public engagement on proposed projects.

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