Vermont — Gov. Scott veto of large data center regulatory framework (2026)

Vermont — Gov. Phil Scott VETOES a TRIPARTISAN Bill Creating a Regulatory Framework for Large Data Centers, Saying Vermont Already Has Sufficient Regulations; Months Later His Own Natural Resources Secretary Tells Congress She Supports Requiring Data Center Owners to Help Pay for the Water Infrastructure Impacts They Create (2026)
Vermont · Vermont H.727 (An act relating to sustainable data center deployment) — vetoed by Gov. Phil Scott, May 28, 2026

Status
Vetoed
Applies to
Not applicable — the bill was vetoed and did not become law
Enforced by
Not applicable; Vermont Agency of Natural Resources is the agency whose secretary testified before Congress

Vermont came close to having a statewide regulatory framework for large data centers and does not have one, because Gov. Phil Scott vetoed the bill. The measure was TRIPARTISAN and wide-ranging — it included far more than water regulation. Scott's stated reasons were that he believes VERMONT ALREADY HAS SUFFICIENT REGULATIONS in place to scrutinise a proposed large data center, and that the bill went too far in what it subjected those facilities to. As recently as the week before September 16, 2026 he was still saying Vermont does not need new state-level rules for data centers. What makes this worth recording is the contradiction that surfaced afterwards. Vermont's Secretary of Natural Resources, JULIE MOORE — Scott's own appointee — testified before a U.S. Congressional committee in support of a FEDERAL bill directing states to limit the costs consumers shoulder for the water data centers use. She told lawmakers she supports 'requiring owners and operators to help pay for the water infrastructure impacts they create,' as well as studying the potential impacts data centers could have on nearby water sources. A Vermont official testifying before Congress is itself described as a rarity. Dan Fingas, executive director of Vermont Conservation Voters — one of the organisations that lobbied for the vetoed bill — put it directly: 'I do think there's a contradiction. This testimony from Secretary Moore to Congress shows that they've already seen areas where Vermont is left unprotected — or, at least, needs more protection.' Moore pushed back, saying her testimony was unrelated to the reasons Scott rejected the bill. In the absence of a state law, THREE VERMONT CITIES AND TOWNS have passed regulations aimed at prohibiting data centers, at least temporarily. In Vernon, a company has eyed the former Vermont Yankee nuclear plant site for a data center project or something else.

Who is protected: No one, as a result of the veto; Vermont residents would have been the intended beneficiaries of the vetoed framework

Legal detail

VERMONT — GUBERNATORIAL VETO of a TRIPARTISAN bill that would have created A NEW REGULATORY FRAMEWORK FOR LARGE DATA CENTERS in the state, including measures similar to those in federal legislation then before Congress. VETOED BY GOV. PHIL SCOTT (R) in 2026. STATED GROUNDS FOR THE VETO, as reported: (1) he believes VERMONT ALREADY HAS SUFFICIENT REGULATIONS IN PLACE TO SCRUTINISE A PROPOSED LARGE DATA CENTER; (2) the bill WENT TOO FAR by subjecting the facilities to [the specification is truncated in the retrieved text]. Scott has maintained the position since — as recently as the week before 2026-09-16 he continued to say he does not think Vermont needs new state-level regulations aimed at data centers. THE ENTRY IS RECORDED AS A NEGATIVE OUTCOME because the dataset's value depends on recording where protections were sought and NOT obtained; a state with no framework is materially different from a state that never considered one, and the bill's tripartisan character makes the veto the operative cause of its absence. Compare me-ld307-data-center-moratorium-2026-vetoed. THE INTERNAL CONTRADICTION IS THE SUBSTANTIVE CONTENT. JULIE MOORE, Vermont's SECRETARY OF NATURAL RESOURCES — an official in Scott's own administration — testified before a U.S. CONGRESSIONAL COMMITTEE in support of A FEDERAL BILL THAT WOULD DIRECT STATES TO LIMIT THE COSTS CONSUMERS SHOULDER FOR THE WATER USED BY DATA CENTERS. Quoted, she supports 'REQUIRING OWNERS AND OPERATORS TO HELP PAY FOR THE WATER INFRASTRUCTURE IMPACTS THEY CREATE,' as well as STUDYING THE POTENTIAL IMPACTS data centers could have on nearby water sources. The testimony is described as a rarity for Vermont officials. DAN FINGAS, executive director of VERMONT CONSERVATION VOTERS (which lobbied for the vetoed bill): 'I do think there's a contradiction. This testimony from Secretary Moore to Congress shows that they've already seen areas where Vermont is left unprotected — or, at least, needs more protection.' MOORE'S REBUTTAL, recorded for fairness: she said in an interview that her testimony was UNRELATED to the reasons Scott rejected the bill. THAT IS A COHERENT POSITION — supporting a federal cost-allocation standard is not the same as supporting a state permitting framework — and this entry does not adjudicate between them. TWO SIGNIFICANT UNINDEXED LEADS RECORDED: (1) THE FEDERAL WATER-COST BILL Moore testified in support of is NOT NAMED in the source and is distinct from H.R. 9340 Ratepayer Protection Act (House-passed 417-3; blocked in Senate), which concerns ELECTRICITY grid costs — a federal bill addressing DATA CENTER WATER costs would be the first of its kind in this dataset. (2) THREE VERMONT CITIES AND TOWNS have passed regulations aimed at prohibiting data centers at least temporarily (attributed to Seven Days reporting); NONE ARE NAMED and none are currently indexed. ALSO RECORDED: in VERNON, a company has eyed the FORMER VERMONT YANKEE site — the decommissioned nuclear plant — for a data center project 'or something else'; the existing-power-infrastructure reuse pattern seen at Pioneer OH six-month data center moratorium (2026) (former AquaBounty site) and Oakland CA 45-day data center moratorium (Oct. 2026) (former Lawrence Berkeley supercomputing building). POLITICAL CONTEXT: data centers have become a major national issue before the November midterms, with recent polling showing them, especially AI facilities, increasingly unpopular with voters; Vermont Conservation Voters launched a public campaign called 'DON'T DATA CENTER VERMONT.' THE BILL NUMBER WAS NOT OBTAINED — see notes.

Key facts

JurisdictionVermont
LevelState
CitationVermont H.727 (An act relating to sustainable data center deployment) — vetoed by Gov. Phil Scott, May 28, 2026
Private right of actionNo, agency enforcement only
PenaltiesNot applicable
Topicsdata-center siting and energy · consumer protection · government use of AI
Agency pageAction Taken by Governor Phil Scott on Legislation — May 28, 2026 — Office of Governor Phil Scott (Official)

More AI rules in Vermont

Related data-center siting and energy rules elsewhere

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