House passes bill to regulate data centers

The Vermont House of Representatives recently approved H.727, legislation aimed at regulating new data center construction and expansions within the state. Introduced by Rep. Laura Sibilia (D-Windham 2), the bill targets data centers requiring 20 or more megawatts, mandating annual reporting and requiring operators to enter into large load service equity contracts. These contracts are designed to ensure data centers pay their fair share of grid and infrastructure costs, preventing ratepayers from subsidizing their electricity use, and also address environmental concerns. Under H.727, the Public Utility Commission (PUC) must verify that a data center serves the "general good of the state" and that contract terms will not adversely affect the grid, the environment, or conflict with environmental justice policies before approval. The legislation also sets standards for water use and discharge, including for PFAS and other contaminants. Separately, Sen. Rebecca White (D-Windsor) introduced S.205, which proposes a complete moratorium on the siting and construction of new data centers operating on 100 or more megawatts until July 1, 2030, alongside calls for further research into their environmental and electricity impacts.