Opinion/Guest column: Natural gas helps power state’s economic growth

Massachusetts is facing an energy dilemma. While some debate how best to address it, no one can deny that natural gas — a much cleaner energy source than other fossil fuels — must be part of the remedy.

“New England relies on natural gas to meet about 60 percent, and at times up to 80 percent, of its electricity and home heating needs,” U.S. EPA Administrator Lee Zeldin wrote in a recent op-ed. In Massachusetts, about half of our electric power is generated with natural gas, and an ISO New England report indicates annual electricity use in the region will increase 11% in the next decade. One reason is the explosive rise of artificial intelligence and the power-hungry data centers that enable it.

In 2024, data centers in the United States used enough electricity to power Thailand for a year, so building such facilities in Massachusetts may appear counterintuitive. But when you consider that a single data center promises billions of dollars in investment and thousands of new jobs, it makes sense that the state established a tax exemption to incentivize such development and make the commonwealth a competitive location.

That financial relief is critical to a Westfield data center project that is projected to generate up to $4 billion in investment, 400 permanent full-time jobs averaging six-figure salaries, and another 2,000 construction jobs over 10 years. The project has been approved by local authorities, but there are several more steps before it can break ground, including qualifying for the tax exemption. Some environmental groups are fighting for that qualification to require more renewable energy and efficiency measures, but such requirements combined with the state’s aggressive emissions reduction goals — which alone caused another leading data center developer to pass on Massachusetts — could tank the Westfield project altogether and put a similar project in Douglas at risk.

We must solve these issues, or else developers will continue to bypass Massachusetts and build data centers in energy-friendly states like Virginia and Texas. The obstacle of adequate energy capacity and access is real, and ISO New England has already flagged resource adequacy concerns in the near future.

Thankfully, Gov. Maura Healey recently acknowledged needing an “all-of-the-above approach to energy,” saying “gas continues to play an important role in our overall energy supply.”

This represents a sensible and promising turnabout that already appears to be impacting the Algonquin Pipeline expansion and could help speed completion of the Constitution Pipeline and development of Project Maple — all of which are key to increasing natural gas supply in New England. The governor should be applauded for facing the reality of our energy needs, because our future economic growth rests on a more robust, more reliable power grid.

Unfortunately, the threat to grid strength and dependability has accelerated of late with delays, shutdowns and revoked approvals of offshore wind projects that would have supplied power to well over 1.5 million Massachusetts businesses and homes. The latest on the chopping block is Avangrid’s New England Wind, which alone would have powered 900,000 homes. The commonwealth has been counting on offshore wind to meet grid demand, and that makes the need for increasing natural gas supply even more critical, and the case for doing so that much stronger.

Without pipeline expansion and infrastructure improvements, we cannot become a national AI innovation leader, meet energy demand, boost economic and jobs growth, and bring down electricity costs.

What’s more, failure to meet demand would force us to continue resorting to options like imported liquified natural gas and oil, which are overpriced, foreign-sourced and worse for the environment. And, as important as it is, addressing climate change must not come at the expense of jobs and economic growth.

Currently, Massachusetts ranks 42nd among U.S. states for per capita natural gas consumption. Regional electric rates are 40% to 70% higher than the national average, and we are facing anticipated increases in electricity pricing this year.

These factors all point to a fundamental need for more natural gas to power our homes, our businesses and our overall economy. Governor Healey has taken a huge first step. Those who categorically oppose natural gas need to do the same. And the state must go further to adjust its emissions targets in the best interest of Massachusetts business owners and consumers.

Jeannie Hebert is president and CEO of the Blackstone Valley Chamber of Commerce.