State Sen. John Velis
Reminder Publishing file photo
WESTFIELD — Acknowledging that the use of artificial intelligence and the need for supporting data centers are not only becoming a fact of life but also a potential economic boon for the state, state Sen. John Velis renewed his push for assurances that the energy and water impacts of these centers do not impact local rate payers.
The Executive Office of Economic Development issued final regulations for new tax incentive programs designed to entice investors in the emerging technology to develop data centers in the state in March.
“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,” Velis said in a statement on June 2. “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.”
Among the potential projects is a $2.75 billion center on a 10-acre parcel on Servisar Industrial Way in Westfield, proposed by Westmass Area Development Corp.
With rising energy rates already a concern for local consumers, Thomas Flaherty, general manager for Westfield Gas & Electric, told The Republican earlier this year that the power draw from such a development would be the equivalent of the peak load required for the entire city of Westfield — 85 megawatts.
Another set of developers are proposing a $200 million, 20-megawatt data center for a vacant property in Holyoke on the Connecticut River. Historically known as the Hampden Papers complex, which closed after 140 years in business in 2022, it was most recently the home of a cannabis growing facility. That project, which developers say involves an orphaned power supply, is smaller and would require only approximately 20 megawatts.
Velis, a Democrat from Westfield whose district also includes Holyoke, penned a pair of letters to the Executive Office of Economic Development expressing concerns about the potential energy strain posed by data centers. He sent the first letter in October 2025 as the EOED was developing the regulations. The final regulations require any developer applying for state tax incentive program to provide information on peak energy demand. Following the release of the regulations in March, Velis reiterated in an April letter that “costs associated with increased energy usage or consumption should absolutely not fall to the residents of our communities.”
The City Council scheduled a June 18 public hearing on a proposed 12-month moratorium on data centers in the city of Westfield. City Councilor Kristen Mello, chair of the Natural Resources Subcommittee, presented the motion, which also called for sharing the proposal with the Planning Board, passed unanimously.
Mello said she had drafted what a moratorium for data centers would look like, giving the same definition as the one used by the state. She said a moratorium must state a specific time frame, exactly what the council needs the time for, and what they are going to do in that time.
She said the draft asks for a year, extendable only if public health is in danger, which will allow the city to look at what the environmental and public health consequences of these installations are and to get expert information on where in the city they can go without causing danger.
