Gov. Scott vetoes AI data center bill
Vermont Governor Phil Scott vetoed a bill that aimed to regulate AI data centers, citing existing state regulatory authority and concerns about deterring investment. The bill sought to establish guidelines for siting, electric rates, and environmental protections for future data centers in Vermont. Scott stated that existing regulations like Act 250 are sufficient.
Governor Phil Scott of Vermont vetoed a bill on Thursday that aimed to regulate artificial intelligence data centers, citing existing state regulatory authority and concerns about deterring economic investment. The proposed legislation, a House measure, sought to establish guidelines for the proper siting of future data centers, ensure that electric ratepayers are not unduly burdened, and implement environmental protections.
Lawmakers had introduced the bill proactively, noting that while there are no current data center proposals in Vermont, the measure was intended to prepare for potential future developments. In his veto message to the legislature, Governor Scott argued that Vermont already possesses "substantial regulatory authority" through Act 250, a comprehensive state land use and development law. He emphasized the importance of avoiding policies that could "risk driving current or future jobs and investment to other states," asserting that existing regulations adequately address concerns regarding data centers.