Absent State Action, Vermont Towns Move to Block Data Centers
Vermont towns, including Morristown, Royalton, and South Burlington, are enacting local bans and prohibitions on data centers after Governor Phil Scott vetoed a statewide bill (H.727) that would have regulated their development. This local action comes amidst growing national opposition to data centers due to concerns over electricity prices, water usage, and environmental impact. The veto has led to a "every town for itself" situation, according to proponents of state-level regulation.
Morristown residents recently urged town leaders to block massive server farms or other "high-impact" businesses for two years, a measure the selectboard unanimously approved. This action makes Morristown the third community in Vermont to pass prohibitions against data centers, following Royalton's five-year ban on AI and cryptocurrency mining data centers and South Burlington's amendment to its zoning code banning centers over 20,000 square feet.
This trend of local action follows Governor Phil Scott's veto of H.727 earlier this year, a state bill that aimed to strictly regulate data center development. The bill sought to protect electricity ratepayers, mandate renewable energy use, and reduce climate pollution. Gov. Scott, however, argued that Vermont already possesses sufficient regulation through Act 250 and the Public Utility Commission, stating that new regulatory systems would worsen economic challenges. Proponents, including Ben Edgerly Walsh of the Vermont Public Interest Research Group and Rep. Kathleen James (D-Manchester), expressed dismay over the veto, emphasizing the critical need for such protections.
Opposition to data centers is a growing national phenomenon, with a Gallup poll indicating 71 percent of Americans don't want them near their homes. Sen. Bernie Sanders (I-Vt.) has also denounced the impact of data centers on electricity prices, water systems, and the environment. Conversely, President Donald Trump has criticized communities opposing data centers, though Gov. Scott stated he disagrees, believing Vermont can achieve economic growth without them. Vermont Conservation Voters launched a public campaign, "Don't Data Center Vermont," to raise awareness.
Despite the local actions and national sentiment, the likelihood of large-scale data center development in Vermont remains debated. Governor Scott believes it is