Executive Order  No. 658: Establishing Requirements for Responsible Data Center Development and Operations in Massachusetts to Protect and Support Ratepayers, Communities, and the Environment

WHEREAS, demand for data storage, processing capabilities, and computational tasks is increasing and is leading to the expansion of data centers across the country and development proposals in Massachusetts;

WHEREAS, data centers are energy- and resource-intensive facilities which can require substantial investments in electric grid infrastructure and power generation resources and can affect energy affordability and reliability, air quality, water resources, noise levels, land use, public health, and the environment, if not appropriately planned and regulated;

WHEREAS, the Commonwealth has a responsibility to ensure that Massachusetts residents, businesses, and communities do not bear the costs or burdens of data center development, operations, or incremental energy and water needs and, instead, share in the benefits of economic opportunity, job creation, strengthened infrastructure, and additional local tax revenues;

WHEREAS, on June 25, 2026, Governor Maura Healey released a Statement of Expectations for Responsible Data Center Development and Operations in Massachusetts (“Framework”) to establish principles and expectations for data center development in Massachusetts that balance economic growth and innovation with protections for residents, businesses, and communities;  

WHEREAS, on June 25, 2026, Governor Healey paused the acceptance of applications for data center sales and use tax exemptions, as established by Section 6(zz) of Chapter 64H of the General Laws, to protect Massachusetts ratepayers and the environment;

WHEREAS, the Framework establishes that data centers should be developed and operated responsibly by bearing the costs associated with their energy needs, supporting clean and reliable energy systems, protecting communities and natural resources, providing meaningful economic and workforce benefits, and ensuring appropriate transparency and accountability;

NOW, THEREFORE, I, Maura T. Healey, Governor of the Commonwealth of Massachusetts, by virtue of the authority vested in me by the Constitution, Part 2, c. 2, § I, Art. I, do hereby order as follows:

SECTION 1.

The Department of Environmental Protection (“MassDEP”), the Energy Facilities Siting Board (“EFSB”), the Massachusetts Environmental Policy Act Office (“MEPA”), and other relevant permitting-related agencies shall not issue any permits or authorizations associated with any data center project with peak electricity demand exceeding twenty-five megawatts to any data center applicant unless that applicant has: (1) demonstrated conformance with the Statement of Expectations for Responsible Data Center Development and Operations in Massachusetts, published June 25, 2026 (“Framework”) including those related to air quality and public health, water use, and community engagement; and (2) submitted a community benefits agreement with key stakeholders as identified in and aligned with the Standards and Guidelines for Community Benefits Plans and Agreements established by the Office of Environmental Justice and Equity (“OEJE”) within the Executive Office of Energy and Environmental Affairs (“EEA”). Prior to filing a community benefit agreement, any data center applicant shall consult with OEJE to confirm alignment with principles of meaningful engagement and community benefit plans outlined in the standards and guidance. Prior to submitting a community benefits agreement to agencies, a data center applicant shall provide said agreement to OEJE for review and comment. The data center applicant shall submit OEJE’s written feedback and comment alongside the community benefits agreement. The OEJE shall serve as the state entity to determine conformance with the standards and guidance; data center applicants shall not be required to submit community benefit agreements for feedback or comment to any other permitting agencies.  

For all permitting-related agencies, the use of non-disclosure agreements with a data center project is prohibited, except as otherwise provided by law.

SECTION 2.

MassDEP, EFSB, MEPA, and other relevant agencies shall review all permits or authorizations that may be required by a data center project with peak electricity demand exceeding twenty-five megawatts and, consistent with existing authorities, amend all relevant regulations to align with standards included in the Framework.

SECTION 3.

The Department of Public Utilities (“DPU”) should continue to prioritize completion of its work to develop large load rate schedules, as per Executive Order 654 and aligned with the Framework. These rate schedules should ensure that other ratepayers do not pay distribution grid upgrades or any associated infrastructure needed to support data center demand.  

SECTION 4.

Further, the DPU should direct the Electric Distribution Companies (“EDCs”) to take measures to eliminate speculative data center projects from interconnection queues. Through the establishment of fees, deposits, or other requirements, the DPU should direct the EDCs to ensure that any data center projects with electricity demand greater than twenty-five megawatts are legitimate projects that do not lead to the inefficient use of EDC study and interconnection resources, and protect the viability of other projects, such as housing, other businesses, or distributed energy resources.      

SECTION 5.

MassDEP shall develop protocols ensuring that data center projects with peak electricity demand exceeding twenty-five megawatts have procured sufficient incremental new clean electricity generation to meet their annual electric consumption and that such electricity procured meets the eligibility requirements to qualify under the Clean Energy Standard, 310 CMR 7.75. MassDEP shall determine whether it is necessary to amend its Clean Energy Standard regulation and/or establish regulations pursuant to Chapter 21N, Section 3(c), of the General Laws to adopt such protocols. By December 31, 2026, MassDEP shall take action to establish an alternative compliance payment (“ACP”) mechanism for data centers that do not procure sufficient incremental clean electricity to meet their annual electric consumption. Funds collected via the ACP mechanism shall be credited to a Ratepayer Protection Fund, with said funds used to mitigate electricity supply costs for all ratepayers.  

SECTION 6.

EEA and MassDEP shall also evaluate greenhouse gas emissions from data center projects with peak electricity demand exceeding twenty-five megawatts as part of the Clean Energy and Climate Plan (“CECP”) pursuant to Chapter 21N, Section 3(c), promulgate regulations pursuant to Chapter 21N, of the General Laws, or institute other programs necessary to achieve reductions in greenhouse gas emissions from data centers.  

SECTION 7.

MassDEP shall develop protocols requiring data center projects with peak electricity demand exceeding twenty-five megawatts to protect water quality and quantity, including by demonstrating compliance with all applicable Massachusetts water, wastewater, and stormwater requirements.

SECTION 8.

EEA shall work with all relevant agencies and departments to establish guidance for annual reporting and disclosures by operating data center projects with peak electricity demand exceeding twenty-five megawatts consistent with the information identified in the Framework. All data center projects seeking permits shall submit to relevant agencies with their applications attestations that they will submit annual reporting disclosures established by this guidance.  

SECTION 9.

EEA, in coordination with the Executive Office of Economic Development (“EOED”) and consistent with the Framework, shall publish, by December 31, 2026, a Municipal Guidance Document for Data Center Development (“Guide”). The Guide shall support municipal leaders and staff, community-based organizations, residents, and other local stakeholders as they evaluate proposed data center projects and engage with developers. In developing the Guide, EEA and EOED shall together engage a broad range of stakeholders, including municipalities and organizations representing municipal leaders and staff, regional planning agencies, utilities, water resource agencies, organized labor, environmental justice and community-based organizations, businesses, the Attorney General’s Office (“AGO”), and the public to seek input on the Guide’s content.

SECTION 10.

All departments and agencies of the Commonwealth shall cooperate, assist, and support in the implementation of this Executive Order, including by assisting with requests for information and guidance from municipal governments that are actively evaluating a proposed data center project.

SECTION 11.

All departments and agencies of the Commonwealth shall encourage any entity seeking to develop a data center project with peak electricity demand exceeding twenty-five megawatts to use responsible labor practices, including but not limited to, utilization of project labor agreements (“PLAs”) and/or labor peace agreements, support of local hiring, workforce training, and registered apprenticeship programs; and insurance of safe working conditions and long-term employment opportunities that provide fair wages and benefits for residents of host and surrounding communities.

SECTION 12.

EEA, in coordination with EOED and Executive Office of Technology, Service and Security (“EOTSS”) shall provide a report annually, starting in September 2027, to the Governor on ongoing policy, regulatory, and legislative changes that support responsible data center development and that protect ratepayers, workers, water resources, air quality, and public health, energy supply and affordability, electric grid security and resilience, and the state’s continued economic growth, competitiveness, and development. The report should also identify opportunities to improve coordination among state agencies, municipalities, regional entities, communities, and industry. In the development of this report, EEA, EOED, and EOTSS shall engage external stakeholders from across Massachusetts to seek feedback.

SECTION 13.

For the purposes of this Executive Order, a data center is “a building or series of buildings that houses and supports the high-performance servers, storage systems, networking equipment, and related computing infrastructure and equipment necessary for storing, processing, and distributing data and applications,” as defined in 400 CMR 9.00, and that is built or expanded after the effective date of this Executive Order, and exceeds a peak electric demand of twenty-five megawatts, or in the case of a data center expansion, an addition of twenty-five megawatts of peak electric demand. The Secretaries of EEA and EOED may jointly approve an exemption to the twenty-five megawatt threshold for a data center that is directly tied to an accredited college or university engaging in academic research, the provision of medical care, or a state-sponsored program.

SECTION 14.

Nothing in this Executive Order shall be construed to require action inconsistent with any applicable state or federal law.

SECTION 15.

This Executive Order shall be effective upon the date signed and shall continue in force until amended, superseded, or revoked by subsequent Executive Order.