Observed Signal · Sep 9, 2026 · Policy Update · Source: techcrunch · Impact: 4/5 · Sentiment: Negative
Massachusetts mandates clean power for large data centers
Massachusetts Governor Maura Healey has signed an executive order requiring data centers larger than 25 megawatts to supply their own clean power, either by generating it onsite, funding nearby clean generation, or paying into a ratepayer protection fund. This makes Massachusetts the third state in recent months to impose restrictions on data center development, following similar actions in Texas and New York. The order also pauses applications for a data center sales tax exemption and directs communities to avoid non-disclosure agreements. These measures reflect a growing public opposition to data centers and their energy demands, driven by the rise of AI. The tech industry is pushing back, with a pro-AI super PAC funded by prominent tech investors planning ad campaigns to sway voters in battleground states.
State-level regulation on data centers directly impacts AI infrastructure and cloud computing costs, affecting the broader AdTech ecosystem that relies on these facilities for data processing and ad serving.
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Key Takeaways & Evidence Grounding
- Massachusetts Governor Maura Healey issued an executive order requiring data centers over 25 megawatts to provide clean power or pay into a ratepayer protection fund.
- The executive order mandates that data centers meet 100% of their electricity demand with clean energy generation.
- Massachusetts is the third state in three months to rein in data center development, following Texas and New York.
- The state is pausing applications for a data center sales tax exemption that went into effect last month.
- The pro-AI super PAC Leading the Future, funded by Marc Andreessen, Ben Horowitz, and Greg Brockman, is buying ads to sway voters ahead of midterms.
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