Vermont's Data Center Debate: Could Broad Definition Block Smaller, Innovative Projects Neighbors Are Embracing?

Vermont's Data Center Debate: Could Broad Definition Block Smaller, Innovative Projects Neighbors Are Embracing?

News ClipCompass Vermont·VT·3/13/2026

Vermont is considering a data center regulation bill (H.727) that would apply the same requirements to all data centers regardless of their technology or environmental footprint. This contrasts with the approach in Maine, where an amendment to LD 307 would pause construction of data centers above 20 megawatts until 2028 but includes provisions for waivers based on environmental performance. LiquidCool Solutions, which is planning a water-free data center at a former air force base in Maine, has requested such a waiver.

electricitywatermoratorium
Compass Datacenters
Gov: Vermont House Committee on Energy and Digital Infrastructure
Vermont is debating how to regulate data centers, with some lawmakers pushing for a uniform approach and others seeking more flexibility. H.727 would set criteria for data centers requiring 20 MW or more, while S.205 would impose a moratorium on AI data centers over 100 MW. Neighboring states like Maine and New Hampshire are taking different approaches, allowing waivers for environmentally-friendly facilities or exempting those that generate their own power. Vermont's debate centers on whether the regulatory framework should differentiate based on technology and environmental impact, or apply uniform standards. The state currently has no large-scale data center proposals, but lawmakers are weighing the potential benefits and challenges of attracting this industry.