Massachusetts mandates clean energy for new data centers

Massachusetts just told the data center industry to pack its own lunch. Governor Maura Healey’s administration rolled out a framework requiring data center developers to fund and procure 100% clean energy for their operations, a policy the state is calling “Bring Your Own Clean Energy.” The mandate ensures that the cost of powering these facilities doesn’t get passed along to regular electricity customers or strain the state’s grid. What the rules actually require The framework, first released on June 25, 2026, does several things at once. It halted applications for a 20-year sales and use tax exemption that was established in 2024, which had been available to data center projects that created at least 100 jobs and committed a minimum $50 million investment. That exemption is now frozen until the state determines adequate ratepayer and environmental protections are in place. Under the new model, data center operators must fund all infrastructure costs themselves while prioritizing on-site renewable energy generation. On September 8, 2026, Healey signed an executive order requiring community approval through formal community benefits agreements for any data center project with peak ...