Massachusetts Pauses Tax Breaks For Data Centers And Addresses Energy, Water And Noise Concerns

CBS Boston

June 26, 2026

Massachusetts Gov. Maura Healey said Thursday that she's pausing tax breaks for data centers in the state and released a framework that addresses concerns about their impact on cities and towns.

"I am halting any tax incentives for data centers until we have strong protections in place for our residents and communities against higher gas and electric bills," Healey said in a statement. "Data centers can support innovation and economic growth, but if developers want to build in Massachusetts, they need to first demonstrate that they can do so without driving up costs or harming our communities."

Massachusetts passed the Qualified Data Center Sales and Use Tax Exemption in 2024. It gives data centers a 20-year tax exemption if they meet certain eligibility requirements, such as maintaining or creating at least 100 jobs in the state within five years of certification.

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