Republican gubernatorial nominee Mike Minogue called for Massachusetts to stop new and expanded data centers this week.
Minogue argues that the facilities could raise electricity costs.
Democratic Governor Maura Healey announced new restrictions on data centers the same day. However, she didn't call for a moratorium.
Data centers house computers that store information and power online services, like artificial intelligence.
“Massachusetts should not be building out its electric system to accommodate massive corporate data centers while residents are struggling with their monthly utility bills,” Minogue's campaign said in a press release.
His campaign called for “no expanded data centers in Massachusetts at this time.” It didn't say how long the moratorium would last.
Minogue said existing data centers should support local energy needs and include water purification systems.
Massachusetts had the third-highest residential electricity rate in the country in June 2026, according to the U.S. Energy Information Administration. The state’s average rate stood at 29.61 cents per kilowatt-hour. That's over 50% higher than the 18.34-cent national average.
Minogue also called for more natural gas pipelines, an end to the state’s net-zero emissions mandate and the removal of climate-related costs from electric bills.
Healey took a different approach Tuesday.
She signed an executive order creating new rules on data centers with electric demand exceeding 25 megawatts.
The order requires developers to reach community benefit agreements before state agencies issue permits. It also tells state regulators to prevent utilities from passing data center infrastructure costs onto other customers.
“We’d like to have data centers be able to provide their own clean energy on day one,” Healey said. “And if they can’t, then they’re going to need to pay ratepayers for the energy that they consume until their own supply is in place.”
The order also bans state agencies from signing nondisclosure agreements with data center developers.
Healey signed the state’s data center sales tax exemption into law in November 2024 as part of an economic development bill. The program lets qualified data centers avoid sales taxes on equipment, software, electricity and construction costs.
Her administration started accepting applications for the tax break this spring. Healey then paused the program in June.
Unlike Minogue, Healey hasn't called for halting data center construction. She'll let them continue if developers meet the state’s new rules.
“The priority is simple: lower electric bills for Massachusetts families now,” Minogue's campaign said.
