Vermont Governor Scott Vetoes Data Center Regulation Bill
Vermont Governor Scott vetoed H. 727, a bill that would have imposed additional regulations on data center construction and activity. The article, a commentary by Ross Connolly, argues that data centers are vital for jobs and tax revenue, and that the bill would have hindered the state's economic growth. It also addresses common concerns regarding water and electricity consumption, asserting they are often overstated.
Ross Connolly, Northeast Region Director for Americans for Prosperity, writes in the Vermont Daily Chronicle, praising Governor Scott's veto of H. 727. The bill, introduced earlier this year, aimed to impose additional regulations on data center construction and operations in Vermont. Connolly argues that such legislation would deter economic growth, depriving Vermonters of jobs, tax revenue, and long-term prosperity from an industry he calls the "invisible backbone of modern American life."
Connolly highlights the economic contributions of data centers, noting the industry's $727 billion contribution to the US GDP in 2023 and $162.7 billion in federal, state, and local tax revenue. He cites examples like Loudoun County, Virginia, where data centers are projected to generate $1.3 billion in property tax revenue by 2027, and asserts that data centers create high-paying construction and technical jobs. He also addresses common concerns, stating that critics' worries about water use are unfounded, as many modern data centers use closed-loop cooling systems. For instance, Maricopa County, Arizona, data centers used significantly less water than local golf courses.
The commentary emphasizes that existing oversight, including Act 250, the Public Utility Commission, and local zoning authority, already provides sufficient regulation. Connolly concludes that H.727, with its "punitive surcharges" and "vague approval standards," was an overreach that would only cause Vermont to fall further behind other states in attracting crucial investment and technology.