Gov. Scott Vetoed State Regulations On Data Centers
Vermont Governor Phil Scott vetoed a state bill (H.727) that would have created a new regulatory framework for large data centers, citing existing sufficient regulations. Meanwhile, his Secretary of Natural Resources, Julie Moore, testified before a U.S. Congressional committee in support of federal legislation to limit consumer costs for data center water usage. Several Vermont cities and towns have enacted local regulations, including temporary prohibitions, amid ongoing debate.
Vermont Governor Phil Scott recently vetoed H.727, a tripartisan state bill designed to establish a new regulatory framework for large data centers, including measures similar to proposed federal legislation. Despite the veto, Julie Moore, Vermont's Secretary of Natural Resources, testified before a U.S. Congressional committee last week, advocating for a federal bill that would require data center owners to pay for water infrastructure impacts and mandate studies on their water usage.
Moore's testimony, described as a rarity for Vermont officials in Washington, D.C., highlighted key goals of the vetoed state bill, surprising some advocates given Gov. Scott's consistent stance against new state-level data center regulations. The governor believes Vermont's existing regulations are adequate and that H.727 imposed overly burdensome standards.
The vetoed H.727 would have mandated closed-loop water systems for cooling data centers or required facilities to minimize water use and avoid burdening public water supplies. It also included quarterly water usage reporting and additional review for high-volume users. The bill had passed both the Vermont House and Senate with broad support, and an attempted override of the governor's veto in the House failed by a narrow margin.
Amid the state-level debate, three Vermont cities and towns have implemented their own regulations, including temporary prohibitions on data centers. Advocacy groups like Vermont Conservation Voters and the Vermont Public Interest Research Group, which lobbied for H.727, are continuing their efforts, with a public campaign called "Don't Data Center Vermont" launched by Vermont Conservation Voters.