Massachusetts Requires Data Centers to Secure Community Benefits for Permits
Massachusetts mandates community benefits agreements for large data center permits.
Why it matters: Legal professionals advising tech firms or local governments must grasp the new permitting requirements that emphasize community engagement and transparency in data center development. This shift affects project approvals and negotiations in the state’s growing data center sector.
- Governor Maura Healey signed Executive Order No. 658 on September 8, 2026, imposing new permit conditions.
- The mandate applies to data centers with peak electricity demands above 25 megawatts, including expansions.
- Developers must align community benefits agreements with the Office of Environmental Justice and Equity's guidelines.
- State agencies are barred from using non-disclosure agreements, ensuring transparency during approvals.
On September 8, 2026, Massachusetts Governor Maura Healey signed Executive Order No. 658, which sets new conditions for large data centers seeking state permits. The order requires facilities with a peak electricity demand exceeding 25 megawatts to negotiate community benefits agreements (CBAs) before approval.
The CBAs must conform to the Massachusetts Data Center Framework and follow the Office of Environmental Justice and Equity's (OEJE) Standards and Guidelines, introduced in March 2026. These standards emphasize measurable, tangible benefits for communities hosting energy infrastructure projects.
Governor Healey said, "We're giving communities full voice in the process," underscoring the administration's intent to involve local residents in addressing impacts from these data centers. Steven A. Baddour, an attorney at Mintz, explained that the executive order aims to prevent "shifting energy, infrastructure, or environmental costs onto Massachusetts ratepayers and communities."
Notably, the order prohibits state agencies from imposing non-disclosure agreements on data center projects, ensuring transparency and fairness throughout the approval stages. This requirement applies both to new facilities and expansions exceeding the 25-megawatt threshold.
As Massachusetts experiences rapid growth in data center development, this regulatory shift represents an effort to balance economic investment with community and environmental protections. Legal advisors working with tech firms and local governments will need to navigate these evolving permitting obligations carefully.
By the numbers:
- September 8, 2026 — Date Governor Healey signed Executive Order No. 658
- 25 megawatts — Peak electricity demand threshold triggering CBA requirement
- March 2026 — Release of OEJE's Standards and Guidelines for Community Benefit Plans