In mass timber buildings, the insulation is typically located on the exterior of the mass timber, potentially allowing the wood to be left exposed indoors. Exterior insulation keeps the mass timber and its connections inboard of the insulation layer, thereby minimizing thermal bridging.
Research conducted on residential projects shows that homes in hot, dry climates with exterior walls of high thermal mass require less energy for air conditioning than wood-framed houses with similar insulation but less thermal mass.

As we can see from the illustration, Exterior Insulation And Thermal Mass has many fascinating aspects to explore.
To assess the effectiveness of thermal mass, three representative thermal mass compositions of external walls as well as three thermal insulation placements of heavy weight external walls under the same recommended U -value are compared.

Effect of Insulation and Mass Distribution in Exterior Walls on Dynamic Thermal Performance of Whole Buildings

Con-versely, interior insulation keeps the thermal mass cold and may exacerbate heat loss from the interior. ASHRAE 90.1 and related codes and standards typically focus on thermal mass in exterior. Annual Energy Use (GJ).
Straw bales are particularly effective under the eaves of an HTM for seasonal insulation... and even permanent exterior insulation.The planterbed in this sketch can stop at the floor slab or extend all the way down to the bottom of the footer for an even larger thermal storage mass.