Data centers in Vermont

📜 State laws

Data center rules bill (H.727) vetoed · May 28, 2026
H.727, the "Vermont Sustainable Data Centers Act", would have covered data centers that use 20 megawatts or more. A data center would have needed a special power contract approved by the Public Utility Commission, so other customers would not pay for new power lines, power plants or grid costs. It would also have required an Act 250 land use permit for every data center, closed-loop cooling (or a system that uses no more water), extra review for using more than 150,000 gallons a day of river or lake water, PFAS ("forever chemical") testing of wastewater, backup diesel or gas generators only in emergencies, a yearly payment for clean energy projects in the host town, and public quarterly reports on water and power use. The Senate passed it 26-3 and the House passed it by voice vote. Governor Scott vetoed it on May 28, 2026, saying existing laws already give enough control and new rules could drive jobs to other states. On May 29 the House vote to override was 83-52, short of the two-thirds needed. The bill is dead; lawmakers would have to start over in 2027. Source

Bill to pause big AI data centers until 2030 (S.205) not passed · Jan 6, 2026
S.205, from Senator Becca White and four other senators, would have banned building or running an AI data center needing more than 100 megawatts of new power before July 1, 2030. It would also have had the Public Utility Commission study data centers and report by January 15, 2027. The Senate Finance Committee heard testimony from January to February 2026 but never voted on it. The two-year session ended without it passing. Source

No special state law for data centers: the usual rules apply · 2026
Because H.727 was vetoed, a data center in Vermont goes through the same steps as other big projects: local zoning, an Act 250 land use permit if it is large enough, state water and air permits, and Public Utility Commission review of new power lines or power plants. Every customer in Vermont, including a data center, must be served by the local electric company. A very large data center would also need a grid study by the power line company VELCO and ISO New England, the regional grid operator. Source

Act 250: the state land use permit for big projects · 2026
Act 250 is Vermont's land use law. A commercial or industrial project needs an Act 250 permit if it uses more than 10 acres in a town with full zoning and subdivision rules, or more than 1 acre in a town without them. A town with full zoning can also choose the 1-acre rule. A regional District Commission reviews the project against 10 criteria, including water, traffic, town services and the look of the land. The Land Use Review Board runs the program. Source

Towns can pause new projects for up to 2 years · 2026
Vermont law lets a town or city pass an "interim bylaw" (a temporary rule, often used as a pause or moratorium) while it studies new zoning. The Selectboard or City Council must hold a public hearing first. An interim bylaw can last up to 2 years. If 5% of voters sign a petition, the board must hold a hearing on changing or repealing it. Morristown used this in 2026 for a 2-year pause on data centers. Source

💡 Who pays for the power

Big new power users pay for their own hookup, under current rules · Feb 12, 2026
The Department of Public Service told lawmakers in February 2026 that if a utility cannot serve a big new customer with what it has, the customer pays all the costs of connecting. All utility rates and special contracts must be approved by the Public Utility Commission. For example, Green Mountain Power's Rate 70 is for customers above 10 megawatts who connect straight to high-voltage lines; they pay for any grid upgrades needed to serve them. The department also warned that big new loads in New England could raise power supply costs for everyone over time, even if the data center is in another state. Vermont has no special data center rate. Source

Example: a 50 MW plan needed a $30 million substation · Feb 24, 2026
A 2025 data center idea in St. Albans of about 50 megawatts would have needed a new substation costing about $30 million. That cost helped end the project. Source

Green Mountain Power rates up 5.5% from October 2026 · Sept 8, 2026
The Public Utility Commission approved a 5.5% rate increase for Green Mountain Power, the state's largest electric company. The company had asked for 7.5%. Bills reflect the increase starting in October 2026. The case was not about data centers. Source

Some town electric departments ask for 14% increases · Oct 8, 2026
In October 2026 the Public Utility Commission is reviewing rate increase requests from the Town of Hardwick Electric Department (14.11%) and Barton Village Electric Department (14.73%). Barton's public hearing is October 27, 2026. These cases are not about data centers. Source

💵 Tax breaks

No special tax break for data centers found · 2026
We found no Vermont tax break written just for data centers. The vetoed H.727 would not have created one either. A data center could apply to the general job incentive program (VEGI), like any other business. Source

VEGI: cash incentive for growing businesses · 2026
The Vermont Employment Growth Incentive (VEGI) pays cash to businesses that add jobs, payroll and investment beyond normal growth. It is open to any business size or type. The Vermont Economic Progress Council decides. The business must show the project would not happen without the incentive, that it brings in more tax money than it costs, and that the town welcomes it. Source

🤐 Secret deals and public records

Vermont Public Records Act: anyone may ask · 2026
Any person may ask to see or copy public records of the state, a town or a city. You do not need to live in Vermont or say why. The agency must answer "promptly", which means within 3 business days in most cases. It can extend that in unusual cases with written notice. Looking at records is free; copies can cost the actual cost, and staff time can be charged if the work takes more than 30 minutes. If you are denied, you can appeal to the head of the agency, then go to Superior Court, where the agency must prove the record is secret. Source

Business secrets can be kept from the public · 2026
Records that are a company's real trade secrets are exempt from the Public Records Act. For the VEGI incentive program, the state must also protect a company's private financial information and report it in total form. We found no Vermont law that bans or limits secret deals (NDAs) between towns and data center developers. Source

💧 Water

Who approves big water use · 2026
The Agency of Natural Resources (Department of Environmental Conservation) approves big water use. A business needs a groundwater withdrawal permit to take more than 57,600 gallons a day from wells or springs. Taking water from rivers or lakes and putting wastewater into them need other state permits. Act 250 also reviews whether a project will harm water supplies. A 20 to 100 megawatt data center cooled with water could use about one million gallons a day. The vetoed H.727 would have required closed-loop cooling and a permit for any groundwater use by a data center. Source

🌫️ Air and generators

Who approves diesel generators · 2026
The Air Quality and Climate Division of the Department of Environmental Conservation issues air permits. A "permit to construct" is needed before building something that pollutes the air, such as stationary diesel generators. A "permit to operate" is renewed every 5 years. The size limits are in Vermont Air Pollution Control Regulations Section 5-401. Source

Who approves new power plants and power lines · 2026
Before building a new power plant, battery plant or big power line, a company needs a "certificate of public good" from the Public Utility Commission under Section 248. The Commission holds hearings and takes public comment. Source

🙋 How to have your say

Who decides a data center near you · 2026
Vermont counties do not zone. Each town and city makes its own zoning rules ("bylaws"). The Planning Commission writes a draft. Then the Selectboard (in towns) or City Council (in cities) holds at least one public hearing and votes. The rule starts 21 days later. If 5% of voters sign a petition within 20 days of the vote, the town must hold a ballot vote on it. The Development Review Board or Zoning Board of Adjustment decides on specific projects. Large projects also need a state Act 250 permit from a District Commission. Source

Appeal deadlines · 2026
If you disagree with a decision by the town zoning administrator, appeal to the Development Review Board or Zoning Board of Adjustment within 15 days. Decisions of the Development Review Board, Planning Commission or Zoning Board, and Act 250 District Commission decisions, can be appealed to the Environmental Division of Superior Court within 30 days. To appeal a town decision, you must have taken part in the hearing first, by speaking or sending a written comment. So go to the hearing or send a letter. Source

Follow an Act 250 permit · 2026
Search the Act 250 database by town to see permit applications and decisions. District Commissions hold hearings on big projects. You can contact your district coordinator with questions about a project. Source

Ask for public records · 2026
Write to the town clerk or the state agency. Describe the records you want (for example, emails or agreements about a data center). Anyone can ask. They must answer within 3 business days in most cases. If they say no, they must tell you why in writing. You can appeal to the head of the agency, then to Superior Court. Source

Speak up at the Public Utility Commission · 2026
The Public Utility Commission decides electric rates and new power plants and lines. Its cases are in the online system ePUC (epuc.vermont.gov), where you can read filings and subscribe to a case. The Commission holds public hearings where anyone can speak, and you can send written comments. To become a full party (intervene) you must file a request. The Department of Public Service represents the public in these cases. Source

🧾 Help with your bills

Energy Assistance: discount on your electric or gas bill · 2026
Green Mountain Power customers with household income at or below 185% of the federal poverty level can get 25% off their monthly energy charges, and may get a past-due bill forgiven. Vermont Gas customers at the same income level can get 20% off. Customers of some town electric departments (VPPSA) have a program too. Apply through the Department for Children and Families (DCF): call 1-800-775-0516. You must reapply every year. Source

Seasonal Fuel Assistance: help with heating bills · 2026
Helps pay part of your home heating bill, whether you own or rent. Households with income at or below 185% of the federal poverty level may qualify. Approved households can also get free weatherization. Apply online through myBenefits, by phone at 1-800-479-6151, or at a DCF district office. Source

📞 Who to contact

Vermont Public Utility Commission (PUC) · 2026
Three-member board that sets utility rates and approves new power plants and power lines (Section 248). Website: https://puc.vermont.gov/ ; case files: https://epuc.vermont.gov/ ; Clerk: (802) 828-2358. Source

Vermont Department of Public Service (PSD) · 2026
Represents the public in utility cases and helps customers with utility problems and payment help. Website: https://publicservice.vermont.gov/ ; phone (802) 828-2811. Source

Land Use Review Board (Act 250) · 2026
Runs Act 250, the state land use permit. District Commissions review big projects. Website: https://nrb.vermont.gov/ Source

Department of Environmental Conservation (Agency of Natural Resources) · 2026
Issues water withdrawal, wastewater, stormwater and air permits (including for diesel generators). Website: https://dec.vermont.gov/ Source

Department for Children and Families: Economic Services · 2026
Runs Energy Assistance discounts and Seasonal Fuel Assistance. Energy Assistance: 1-800-775-0516; Fuel Assistance: 1-800-479-6151. Website: https://dcf.vermont.gov/benefits Source

Vermont General Assembly · 2026
Find bills, hearings and your legislators. The next session starts in January 2027. Website: https://legislature.vermont.gov/ Source

Vermont Economic Progress Council (VEPC) · 2026
Decides VEGI cash incentives for businesses. Website: https://accd.vermont.gov/economic-development/funding-incentives/vegi Source