(6/30/2026 – Boston) As Massachusetts continues to navigate rising utility demands and the accelerating growth of the data‑center industry, State Senator John C. Velis today announced the filing of a comprehensive amendment to ensure that data centers—not residents, local communities, or small businesses—bear the full cost of all electricity and water consumption.
The amendment, which inserts a new section into M.G.L. Chapter 164, establishes firm ratepayer protections, water‑use safeguards, and full financial accountability for any data center operating at or above 20 megawatts. These legislative efforts come after continued public advocacy from Senator Velis on this issue.
“Massachusetts must continue to be a national leader in technological advancement. But innovation cannot—and will not—come at the expense of our residents,” said Senator Velis. “Families are already feeling financial pressure, and no community should be asked to subsidize the staggering electric and water needs of these massive facilities. This amendment makes one thing clear: data centers must pay their own way.”
Key Provisions of Amendment #140 – Data Center Cost Responsibility
The newly filed amendment requires:
- Full electric‑infrastructure cost responsibility — Data centers must cover all direct and indirect utility system costs associated with serving their facilities. No portion may be shifted onto ratepayers.
- Binding cost‑recovery and financial‑assurance mechanisms — Each data center must enter enforceable agreements and provide financial security to guarantee full reimbursement of utility infrastructure and service costs.
- Transparency and reporting standards — Electric distribution companies must separately track and report all data‑center‑related expenses, engineering studies, and cost‑allocation analyses.
- Mandatory water‑compatibility reviews — Before any municipal contract is approved, a facility must obtain a Water Compatibility Statement certifying that its usage will not jeopardize local drinking‑water reliability.
- Drought‑response requirements — Data centers must adhere to local and state drought‑management mandates, reducing water usage during declared drought periods just as large industrial users must.
- Annual public‑supply reporting — Facilities must provide annual summaries of total withdrawals, reclaimed‑water use, and estimated consumption to local water suppliers.
Filed to legislation being taken up by the Senate this week, the amendment from Senator Velis will be considered during the Senate’s debate tomorrow. Senator Velis also noted he will continue to pursue this issue regardless of the amendment’s outcome.
“This amendment is about fairness, accountability, and ensuring that Massachusetts communities are never left footing the bill,” Velis added. “I’m grateful for the collaborative work done so far by state agencies, municipalities, and my colleagues in the legislature, and I will continue pushing for balanced, responsible oversight of data‑center development statewide.”
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