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AI data center construction could be prohibited until 2030

S.205 would ban centers over 100 megawatts while their energy use and water consumption is studied

By Mona Abou, for the Community News Service

Vermont lawmakers are considering a bill that would temporarily ban the construction of artificial intelligence data centers in Vermont, while studying the effects these facilities have on the power grid and water supply.

The bill, S.205, would stop the construction of data centers that require more than 100 megawatts of electricity until July 1, 2030. In the interim, the Vermont Public Utility Commission would be required to investigate the centers’ potential environmental impacts and give recommendations for the state’s next steps by Jan. 15, 2027.

The bill’s sponsor, Sen. Rebecca White, D-Windsor, told the Senate Committee on Finance on Jan. 15 that the bill is meant to be a temporary pause, not a permanent ban.

“This is a common sense pause on development when we are experiencing an exponential growth in an unregulated market,” White said.

AI data centers are facilities that contain the infrastructure needed to run and manage artificial intelligence models. The centers, many times located in large warehouses, require cooling systems that consume massive amounts of water.

White said AI data centers are more dangerous to the environment than traditional data centers because of their demands on resources, like water and electricity. She explained that an AI data center can use up to 5 million gallons of fresh water per day, roughly the same amount used per day in a town of 10,000 to 50,000 people.

“That’s Burlington, South Burlington and Colchester,” she said.

White said Vermont currently has no AI data centers that meet the 100-megawatt threshold, but the state does have smaller ones. She also said that a statewide policy is needed because Vermont towns are already coming up with their own AI data center bans.

“I’m nervous that we’re going to end up with a patchwork of municipal regulations if we don’t say there’s a plan in place,” White said.

The Senate Committee on Finance heard from Nicholas Miller, a policy associate with the National Conference of State Legislature’s Fiscal Affairs Program, on Feb.10 about how states often debate potential benefits regarding the creation of these centers.

Miller said that in reality, the centers create a lot of jobs when they first start up, but the number dips once the facility is actually running.

“When the data centers are being built, they’re employing up to 1,500 people during construction for the very large data centers,” he said. “The number generally settles to somewhere between 10 and 50, and often on the lower end of that range — 10 to 20 full-time positions once the data centers are operational.”

Sen. Scott Beck, R-Caledonia, said he’s not fully convinced that the state needs a moratorium now.

“We don’t know nearly enough about this industry to even contemplate doing a bill,” he said in an interview with Community News Service.

Beck also questioned if the Public Utility Commission would even approve a project as large as those described in the bill. He said some states require AI companies to bring their own power generation to avoid using local power grids.

According to Beck, Vermont does not currently have companies “banging down the door” to build these data centers.

“This is like an effort to turn away somebody that hasn’t even tried to enter the state,” Beck said.

In Dec. 2025, President Donald Trump signed an executive order titled, Ensuring a National Policy Framework for Artificial Intelligence, prohibiting states from regulating AI. White said this concerned her because if S.205 is passed, it could lead to federal backlash.

Lawmakers are continuing to discuss the bill and have not yet voted.

Via Community News Service, a University of Vermont journalism internship

# contentMap.en
AI data center construction could be prohibited until 2030

S.205 would ban centers over 100 megawatts while their energy use and water consumption is studied

By Mona Abou, for the Community News Service

Vermont lawmakers are considering a bill that would temporarily ban the construction of artificial intelligence data centers in Vermont, while studying the effects these facilities have on the power grid and water supply.

The bill, S.205, would stop the construction of data centers that require more than 100 megawatts of electricity until July 1, 2030. In the interim, the Vermont Public Utility Commission would be required to investigate the centers’ potential environmental impacts and give recommendations for the state’s next steps by Jan. 15, 2027.

The bill’s sponsor, Sen. Rebecca White, D-Windsor, told the Senate Committee on Finance on Jan. 15 that the bill is meant to be a temporary pause, not a permanent ban.

“This is a common sense pause on development when we are experiencing an exponential growth in an unregulated market,” White said.

AI data centers are facilities that contain the infrastructure needed to run and manage artificial intelligence models. The centers, many times located in large warehouses, require cooling systems that consume massive amounts of water.

White said AI data centers are more dangerous to the environment than traditional data centers because of their demands on resources, like water and electricity. She explained that an AI data center can use up to 5 million gallons of fresh water per day, roughly the same amount used per day in a town of 10,000 to 50,000 people.

“That’s Burlington, South Burlington and Colchester,” she said.

White said Vermont currently has no AI data centers that meet the 100-megawatt threshold, but the state does have smaller ones. She also said that a statewide policy is needed because Vermont towns are already coming up with their own AI data center bans.

“I’m nervous that we’re going to end up with a patchwork of municipal regulations if we don’t say there’s a plan in place,” White said.

The Senate Committee on Finance heard from Nicholas Miller, a policy associate with the National Conference of State Legislature’s Fiscal Affairs Program, on Feb.10 about how states often debate potential benefits regarding the creation of these centers.

Miller said that in reality, the centers create a lot of jobs when they first start up, but the number dips once the facility is actually running.

“When the data centers are being built, they’re employing up to 1,500 people during construction for the very large data centers,” he said. “The number generally settles to somewhere between 10 and 50, and often on the lower end of that range — 10 to 20 full-time positions once the data centers are operational.”

Sen. Scott Beck, R-Caledonia, said he’s not fully convinced that the state needs a moratorium now.

“We don’t know nearly enough about this industry to even contemplate doing a bill,” he said in an interview with Community News Service.

Beck also questioned if the Public Utility Commission would even approve a project as large as those described in the bill. He said some states require AI companies to bring their own power generation to avoid using local power grids.

According to Beck, Vermont does not currently have companies “banging down the door” to build these data centers.

“This is like an effort to turn away somebody that hasn’t even tried to enter the state,” Beck said.

In Dec. 2025, President Donald Trump signed an executive order titled, Ensuring a National Policy Framework for Artificial Intelligence, prohibiting states from regulating AI. White said this concerned her because if S.205 is passed, it could lead to federal backlash.

Lawmakers are continuing to discuss the bill and have not yet voted.

Via Community News Service, a University of Vermont journalism internship