Healey's order ties state permits to community agreements and clean energy after halting tax breaks
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Overview
Updated 1 hour agoMassachusetts towns now hold veto power over new data centers. Gov. Maura Healey signed an executive order Tuesday requiring projects over 25 megawatts to win community approval before state permitting, and creating a fund that charges data centers for missed clean-energy targets.
The order follows three municipal bans or moratoriums and a June pause on the state's 2024 data center tax incentive. A poll conducted in late August found 69% of Massachusetts residents oppose data centers in their local areas.
Why it matters
Anyone building a data center in Massachusetts must now win over the host town first — a model other states may copy.
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Timeline
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Built a 14-acre data center campus in Lowell on the former Prince Spaghetti factory site.
Regulates air, water, and waste in Massachusetts.
Timeline
November 2024 September 2026
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Healey signs executive order on local approval
Today PolicyNew data centers over 25 MW must win community approval, meet clean-energy standards, and sign community benefits agreements before state permitting.
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Poll finds 69% oppose local data centers
PollNBC News/SurveyMonkey poll shows broad bipartisan opposition to AI data centers in respondents' areas.
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Judge blocks Lowell generators
LegalMiddlesex Superior Court temporarily blocks four diesel generators while allowing four already installed to operate.
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Holyoke enacts citywide data center ban
Local policyMayor signs law prohibiting new data centers in the city.
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Healey halts data center tax incentives
PolicyGovernor pauses the tax exemption and unveils an eight-point developer framework focused on clean energy and community benefits.
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Mansfield voters approve near-total ban
Local policyTown votes to ban most new data center development.
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Lowell residents sue over diesel generators
LegalResidents challenge MassDEP's approval of Markley Group's 27-generator air quality plan.
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Lowell enacts first data center moratorium
Local policyLowell becomes the first Massachusetts city to pause new data center construction.
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Massachusetts passes data center tax exemption
PolicyLegislature's economic development bill creates 20-year sales and use tax exemption for qualified data centers.
Historical Context
3 moments from history that rhyme with this story — and how they unfolded.
Local fracking bans and state preemption (2012-2019)
Dozens of towns and counties in New York, Colorado, and other states passed local bans or moratoriums on hydraulic fracturing. New York upheld local control and later banned fracking statewide, while Colorado moved to preempt local bans after the 2018 defeat of Proposition 112.
New York ended with a de facto statewide ban; Colorado and Texas asserted state authority over siting.
Established the 'who decides' question: whether local communities or state governments control energy infrastructure siting.
Massachusetts is choosing the local-control path, reversing its own 2024 incentive-based approach — the opposite of states that preempt local limits.
Plattsburgh, NY bitcoin mining moratorium (2018)
In March 2018, Plattsburgh, a New York city with cheap hydro power, voted an 18-month moratorium on cryptocurrency mining after a bitcoin facility drove up residents' electricity bills. The city's utility saw a spike in demand, and officials cited noise and power concerns.
The moratorium passed, and the mining firm's expansion stalled as bitcoin prices fell.
It set an early precedent for local limits on energy-intensive computing and drew national attention to the local costs of such facilities.
Mirrors the same dynamic now in Massachusetts: energy-intensive computing facilities drawing local backlash over utility bills and environmental impact.
Northern Virginia data center backlash (2022-2024)
Prince William County, Virginia, approved the 'Digital Gateway' project in late 2022, rezoning thousands of acres for more than 20 data centers anchored by Amazon. Residents sued over noise, power lines, and the loss of historic sites, and the county faced years of litigation and renegotiation.
The project proceeded but was scaled back and contested; lawsuits continued into 2024 and beyond.
Became the poster child for how data center projects can bypass local concerns when approved at the county or state level.
Shows the national scope of data center siting conflict; Massachusetts' local-approval requirement is a direct response to similar objections.
