Governor Healey Halts Data Center Tax Incentive and Calls for Strict Guardrails to Protect Ratepayers, Environment & Public Health

BOSTON — Governor Maura Healey today announced that her administration will pause accepting data center sales tax exemption applications until stronger protections are in place for Massachusetts residents, businesses and communities. The administration is also releasing a comprehensive framework to guide responsible data center development to ensure projects do not drive up energy costs, strain local infrastructure or harm public health and the environment.

The framework outlines clear compliance expectations for data center developers, including that they must fund the full cost of the energy infrastructure and clean energy supply needed to support the project, protect the surrounding environment, water systems, and public health and safety, and ensure that local businesses and residents can benefit from job creation and other investments.

Statements of Support: 

Daniel Sosland, President, Acadia Center: 

“We appreciate Governor Healey for thoughtfully addressing the economic and competitive issues arising from data centers in a way that prioritizes the very real potential impacts on Massachusetts’ climate, consumers and communities. The continued growth of data centers is a reality that needs a comprehensive response, putting guardrails in place to protect both local host communities as well as energy ratepayers writ large. Massachusetts can be a leader in setting the right framework and criteria to pave the way for clear data center policies that reflect stakeholder interests and ensure their participation in the process.”

To read the full press release, click here.