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By Sam Douglass
Gov. Phil Scott on Thursday vetoed H.727, a bill intended to regulate the development of large-scale data centers in Vermont, arguing the legislation would create unnecessary regulations and potentially harm the state’s economy. But it’s possible that the legislature will override his veto.
In a veto letter sent to lawmakers on May 28, Scott said Vermont already has regulatory authority through Act 250, Public Utility Commission oversight, environmental permitting, energy siting requirements, and local zoning laws to address concerns about data centers.
“The last thing Vermont should do is worsen our economic challenges by adding new and unnecessary regulatory systems,” Scott wrote.
While the Governor acknowledged concerns raised by many Vermonters about the strain large-scale data centers can place on energy systems and infrastructure, Scott argued the bill’s implications would extend beyond the technology sector.
“Although the bill is seemingly aimed at data centers, its broader message extends far beyond those facilities and into areas Vermont depends on for many of its best jobs,” he wrote.
The governor specifically pointed to industries such as advanced manufacturing, semiconductor production, clean energy, and other innovation-focused sectors that could be negatively impacted because they also rely heavily on energy and infrastructure investments.
Scott said the legislation “creates an unacceptable precedent” and risked discouraging future investment and economic development.
“We cannot afford policies that risk driving current or future jobs and investment to other states,” he wrote.
The Governor indicated he could support a revised version of the proposal if the legislation more closely resembles an earlier House-passed version of the bill.
However, despite his arguments in opposition to the bill, bill sponsor Rep. Laura Sibilia told VDC that the Scott administration did not express these arguments during House testimony and was unavailable to meet with the House committee on the Senate version that was passed. The legislature received a one page letter from the administration in mid-May.
H.727, was approved by lawmakers this year amid growing national debate over the rapid expansion of energy-intensive data centers used to support artificial intelligence and cloud computing. Just this week, public outcry in New Hampshire over the development of a data center in Nottingham resulted in the plans being scrapped. While other states in the northeast have already seen significant development of data centers, Vermont has a history of rejecting large scale developments.
The Governor’s veto sends the bill back to the Legislature, where lawmakers could attempt to override it. Considering the Senate passed the legislation on a 26-3 vote, and with little opposition on a voice vote in the House, it’s possible that an override vote will be taken up.
Information for In Committee news reports are sourced from GoldenDomeVt.com and the General Assembly website. Generative AI has not been used in the writing of this story.
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Categories: Legislation, Science and Technology









Scott is bought and paid for ladies and gentlemen.
The Governor’s reasons for his veto seem to be right on target. In fact, They illustrate the points Swenson’s Progressive apartheid article earlier in this VDC make on legislative abuse of power,and lack of “skin in the game”.
The Data centers are causing incredible environmental havoc already, and unless you dig you will not find out about it, because the news is the programming. These are intended or at least capable of creating a Chinese-style compliant culture, the legislatures looking at creating business, for who? for what? For the digital emprisonment (no use of money unless it’s ok by AI) of every Vermonter? If the gov really had a handle on it, and if the leg did, they would see they are only fast tracking their eventual replacement.
Where is this damage any sources?
Emilies response: crickets 🦗
There is a need for more information on the AI Center issue, they do need to be able to supply their own power as to not stress the already reduced availability on the system. There are also reports that the negative press being carried by MSM and Democrats is actually Chicom disinformation so they can have a leadership role in the industry. More research needed
They should have gone further and proposed an outright ban on any large-scale data center projects specifically. That would take care of Scott’s nebulous claim that this bill “extends far beyond those facilities.”
The data centers are not for you. They are for “them,” the technocrats who want to build a surveillance profile of you by vacuuming up every last bit of data they can collect. This model is already up and running in China–the country our president wants us to “keep up” with.
I hope they eminent domain his house
Do lawmakers actually think somebody would come to Vermont to build a data center? Vermont ranks only 35th in business friendliness and we have the 10th highest cost per kilowatt for electricity. Why would any business want to come to Vermont?
Agreed. Vermont progressives say they don’t want data centers (at least in Vermont), but they utilize all of the online services that require a data center. There’s a word that describes this disconnect, oh yeah, Hypocrisy.
Actions speak louder than words. If you don’t like data centers, then unplug.
It’s that simple.
We can already utilize online services without needing any large data centers in VT. Our population isn’t exactly exploding, so why would we need more?
So as long as the data centers are located in another state? Then it’s OK?
Nope. Again, who needs them? The ones going in are overbuilt with far more compute power than could possibly be needed for “normal” use. So it must be they’ll be used for something else. (See my original post above.)
“Again who needs them”
Well , you do if you’re posting this with an iPhone that backs up data on iCloud, your using the services of a data center. But as long as it’s not located in Vermont, then it’s apparently OK. So the point is, if you dislike the impact that a data center would have in Vermont, then don’t create the need for one.
Before Stargate was launched, we could already bank, message, back up to the cloud, etc. My internet use is not “creating” a need since the capacity is already there. So there’s no logical justification for the expense and resource use Stargate will require–orders of magnitude more than what we actually need.
Scott states that the State already has regulatory authority over this type of development including Act 250. So my question is, if all this authority exists, why in hell did the Legislature have to redo Act 250 with Act 181? Did I miss something here?
We need data centers, nuclear electric plants, cheaper electricity, better landfill solutions, more jobs, less regulations, less solar farms. We build them in places not easily viewed.
We already have the data centers we need. And if you want cheaper electricity, a large data center will leave you with exactly the opposite.
Democrats always want to regulate and control everything to the detriment of local economies. Why do they do this? They have a desire to control everything. Power. It is all they care about. Very frustrating.
People all over our entire country are pushing back against the data centers . . . they destroy the environment. They use massive amounts of water: Fayetteville, Georgia, secretly drained nearly 30 million gallons of water in a reservoir before residents noticed a drop in their own water pressure. When the hot water that doesn’t end up as steam is cycled back to it’s not the same for the environment as it was when it was taken. ——One of Vermont’s blessings is the water, if these are let into our state water will be a problem. Can you imagine if they used Lake Champlian for thier water? ?? ——200,000 people depend on Lake Champlain for their drinking water. This figure represents roughly 35% of the basin’s population, with water withdrawn at an estimated 20 million gallons per day to supply over 20 towns and cities in Vermont, New York, and Quebec. Some sources note the number of direct dependents may reach up to 250,000 people.——Let’s not destroy any of our state’s treasures with these surveillance objects.