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Massachusetts (US) imposes new restrictions on data centres over energy concerns

The Governor of Massachusetts (United States) has announced significant restrictions on data centre development, including a requirement for companies to secure their own renewable energy supply (Massachusetts government statement, 09/08/2026).

Under an executive order issued by the Governor, developers of data centres with peak electricity demand above 25 MW will be required to invest in their own clean energy generation and secure local approval before applying for state construction permits. Developers that do not use renewable energy to cover their electricity needs will instead have to contribute to a new fund benefiting Massachusetts ratepayers

Several other US states, including New Jersey, New York and Pennsylvania, have either suspended or introduced new restrictions on data centre development amid growing opposition from local communities. States are also taking steps to require developers to cover the costs of the power and infrastructure needed to support their large-scale computing loads.

Electricity demand from data centres, both in the US and globally, is expected to increase sharply and become a major new source of electricity consumption over the coming decades. This additional demand is already putting greater pressure on power grids and energy bills, contributing to growing opposition from local communities and governments:

  • In Denmark, the government has recently introduced emergency legislation aimed at reforming access to the country’s electricity grid through a priority system. Data centres will be assigned low priority, and applications may be rejected where sufficient energy capacity is unavailable (KEI, 21/08/2026).
  • In Australia, the Australian Energy Market Operator (AEMO) recently published its 2026 outlook, forecasting that electricity consumption from data centres across the National Electricity Market (NEM) will increase from around 5 TWh in 2025-26 to 34 TWh by 2035-36. Their share of electricity supplied through the grid is expected to rise from approximately 3% to 13% (KEI, 27/09/2026).
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