Vermont Business Magazine Governor Phil Scott on Thursday returned without signature and vetoed H.727, An act relating to sustainable data center deployment and sent the following letter to the General Assembly. On Friday, the House comfortably sustained his veto (83-52) as all 52 Republican representatives in attendance voted with the governor. There were many absentees. The measure was broadly popular in the Legislature and required only one roll call vote, where the Senate passed it 26-3. But at the end of the day, and almost at the end of the legislative session, the bill failed.
Dear Ms. Wrask:
Pursuant to Chapter II, Section 11 of the Vermont Constitution, I’m returning unsigned and without my approval, in the time permitted by the Constitution, H.727, An act relating to sustainable data center deployment.
While I share some concerns Vermonters have about data centers, and I’m mindful of the challenges they have created in other states, existing Vermont law already provides substantial regulatory authority to prevent harmful impacts. Vermont’s Act 250 process, Public Utility Commission oversight, environmental permitting requirements, energy siting rules, and municipal zoning already provide extensive review and enforcement tools. The last thing Vermont should do is worsen our economic challenges by adding new and unnecessary regulatory systems.
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. Vermont is actively trying to retain and expand jobs in advanced manufacturing, semiconductor manufacturing, energy and clean technology, and other innovation-driven industries that also require substantial energy and infrastructure.
I understand the potential impacts of data centers, but this bill creates an unacceptable precedent which will have much broader consequences for economic opportunity and long-term competitiveness in Vermont. We cannot afford policies that risk driving current or future jobs and investment to other states, when we already have regulations and policies in place to address our concerns about data centers.
If the Legislature wishes to pass a data center bill, it should start with a bill that more closely resembles the House passed version of H.727, with additional and substantial changes made to prevent unintended economic consequences in other important sectors of Vermont’s economy.
Sincerely,
/s/
Philip B. Scott
Governor
To view a complete list of action on bills passed during the 2026 legislative session, click here.
5.28.2026. Governor. 109 State Street | The Pavilion | Montpelier, VT 05609-0101 | www.vermont.gov
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