Governor vetoes bill that takes aim at data center development

Vermont Governor Phil Scott on Thursday vetoed H.727, a bill aimed at regulating large-scale data center development in the state. In a veto letter dated May 28, Scott argued the legislation would impose unnecessary regulations that could negatively impact Vermont's economy. He stated that the state already possesses adequate regulatory authority through existing mechanisms such as Act 250, Public Utility Commission oversight, environmental permitting, energy siting requirements, and local zoning laws to address concerns related to data centers.

While acknowledging public worries about the strain large data centers place on energy systems and infrastructure, Governor Scott asserted that the bill's implications extended beyond the technology sector. He highlighted other industries like advanced manufacturing, semiconductor production, and clean energy, which also rely heavily on energy and infrastructure, as potentially being harmed by the proposed legislation. Scott warned that such policies could discourage future investment and job creation in the state, suggesting he would support a revised version of the bill that more closely resembled an earlier House-passed version.

Despite the Governor's stated opposition, bill sponsor Rep. Laura Sibilia noted that the Scott administration did not present these arguments during House testimony and was unavailable to discuss the Senate-passed version of the bill with the House committee. The bill had received strong legislative support, passing the Senate 26-3 and with little opposition in the House, leading to the possibility that lawmakers may attempt to override the Governor's veto. The article also briefly mentioned recent public opposition in New Hampshire that led to a data center project being scrapped, contrasting it with Vermont's history of rejecting large-scale developments.