(6/2/2026 – Westfield) As utility costs are on the rise for residents across the Commonwealth and the state begins accepting applications for its new Data Center tax incentive program, Senator John C. Velis continues to call on state leaders to ensure that Data Centers do not pass the costs of their heavy energy and water usage on to local rate payers.
In March, the Executive Office of Economic Development (EOED) issued final regulations for the Commonwealth’s new tax incentive programs designed to encourage significant investments by technology companies aiming to expand their networks through data centers, technology hubs for data processing and storage. Data Centers, which Velis described in a recently released pair of letters sent to the agency as “extremely and increasingly energy-hungry”, have been shown to put substantial strains on local resources and communities.
“I firmly believe that Massachusetts needs to continue to be a leader of technological innovation and advancement; in fact I think it is vital for Massachusetts to remain a competitive with other states however, these advances cannot be born on the backs of residents,” shared Senator John Velis. “Today’s costs already put enough strain on residents’ wallets, and that is why I firmly believe that any costs associated with Data Centers should fall squarely on the facilities that are directly responsible for the increased usage.”
An October 2025 letter from Velis to EOED noted his concerns regarding Data Center’s energy usage as the agency collected feedback on the program’s then-draft regulations. The Agency’s final regulations released in March now include a requirement that any applicant for the tax incentive program must provide information on “the peak electricity demand and consumption of the proposed Qualified Data Center” to better assess applicants and promote the efficient planning of any dater centers. A subsequent letter from Velis noted these improvements and stressed again that any “costs associated with increased energy usage or consumption should absolutely not fall to the residents of our communities”.
Senator Velis noted that he is grateful for the attention paid to his letters by EOED and that he will continue to work with them, other relevant state agencies, members of the legislature, and municipalities themselves to ensure that any data center program is carried out in a balanced and responsible way.
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