Principal Brook Detterman (Boston) spoke with Massachusetts Lawyers Weekly about Governor Maura Healey’s new executive order (EO) requiring developers of large data centers in Massachusetts to negotiate community benefits agreements before securing state approvals.

In “Data center rules raise legal questions for developers,” Brook drew on his prior experience in solar permitting to discuss how the EO builds on the existing Standards and Guidelines for Community Benefit Plans and Community Benefit Agreements, while raising questions about application to projects already in development or permitting. Brook explained that the EO “builds upon the guidance that was already pre-existing” for negotiating and executing community benefits agreements. Based on prior community benefits agreements, Brook expects that some agreements may include items like improvements to public space, roads, public facilities (like parks), and utility infrastructure, along with other items like visual impact, noise, and construction mitigation, with flexibility to tailor agreements to individual communities.

Brook also pointed to a recent dispute involving a data center in Lowell, Massachusetts, to emphasize the importance of early community engagement, municipal coordination, mitigation planning, and thoughtful site selection. These steps can help developers anticipate cumulative environmental impacts, address environmental justice concerns, meet new community benefits requirements, and avoid permitting challenges.

Comparing the growing regulatory scrutiny of data centers to his experience with solar and other energy facility permitting, Brook observed, “It’s that same evolution where law is catching up to the industry in some ways.”

Brook advises clients through all phases of renewable energy development, including solar, wind, biomass, and biogas projects, with a focus on regulatory compliance, incentives, permitting, and commercial agreements. Beveridge & Diamond advised on all aspects of data center permitting, construction, and compliance.

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