Governor Scott Vetoes Bill Protecting Vermonters from Unchecked Data Center Development

Law would stop data centers from driving up costs and polluting communities

Vermont's state house in autumn

The law has overwhelming, tripartisan support, passing 26-3 in the Senate and with a near-unanimous voice vote in the House. Photo: Shutterstock

May 28, 2026 (Montpelier, VT) – Governor Phil Scott has vetoed a law that would protect Vermonters from dirty, expensive, unchecked data center development. The law has overwhelming, tripartisan support, passing 26-3 in the Senate and with a near-unanimous voice vote in the House. 

“Some data centers use more power than the entire state of Vermont. In what world is it fair to dump that on our shoulders?” said Adam Aguirre, Conservation Law Foundation staff attorney. “We need to hold these massive centers accountable by law to make sure that residents’ interests are valued more than big corporations’ profits. The governor’s reckless veto puts Vermonters at unnecessary risk of skyrocketing utility bills and unchecked pollution. We all deserve better.”

“Let’s be clear about what Governor Scott just vetoed: a bill that would ensure some of the largest corporations on Earth couldn’t stick Vermont families with higher electricity bills and dirtier air and water – and one that would require them to help pay for weatherization and energy-saving projects in the communities hosting their facilities,” said Ben Edgerly Walsh, Climate & Energy Program Director at the Vermont Public Interest Research Group. “The Koch brothers’ political network fought this bill. The Scott Administration opposed this bill. Vermont’s legislature passed it with overwhelming, tripartisan votes anyway, and yet the Governor just handed a victory to billion- and trillion-dollar tech companies at the expense of Vermont ratepayers. The legislature absolutely needs to hold a vote to override this egregious veto as soon as possible.”

“As data centers dramatically drive up energy bills in places that host them, Vermont lawmakers, thankfully, took a proactive approach,” said Johanna Miller, energy and climate program director at the Vermont Natural Resources Council. “Unfortunately, and deeply shortsightedly, Gov. Scott’s veto shows he’s willing to put Vermonters at risk and exposed to the high costs and consequences from large scale data centers. H.727 lays out a pathway to ensure that if data centers come to Vermont, they will not jack up electric bills, undermine Vermont’s climate progress, or pollute precious water supplies. Unfortunately, it appears that the kind of leadership and vision needed to proactively protect Vermonters on this may be out of reach for Governor Scott.” 

If enacted, H.727 would prevent data centers from increasing energy costs for Vermont residents. It would block data centers from releasing toxins into nearby communities or excessive, planet-heating carbon pollution. It would also hold project developers accountable for listening to and investing in local communities, so Vermonters are supported, not burdened. 

The bill may now return to the legislature for a veto session. If two-thirds or more of the House and Senate stand by the bill that they passed with near-universal support, the legislation will become law despite Governor Scott’s opposition.

Experts from VPIRG, VNRC, and CLF are available for further comment.

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