Data-center law in Vermont
Subnational jurisdiction · as of 2026-09-06
Vermont has no data-center-specific permitting statute and no data-center-specific tax incentive; its sales and use tax exemption list at 32 V.S.A. § 9741 names no exemption for data-center, server, or colocation equipment, unlike Virginia's or Texas's dedicated carve-outs.
A data center's permitting spine instead runs through the general framework: Act 250 land use and development review for construction above the statute's acreage or unit thresholds, Public Utility Commission certificates of public good for new or expanded electric generation, storage, or transmission facilities, utility least-cost integrated planning, and air pollution control permits for a backup generator fleet.
In the 2025-2026 biennium the General Assembly passed a marquee, data-center-specific bill, the Vermont Sustainable Data Centers Act (H.727), which would have required a data center using or able to use 20 megawatts or more of power to enter a Public Utility Commission approved large-load service equity contract and a standalone ratepayer tariff class with its electric distribution company.
Governor Scott vetoed the bill, and the House sustained the veto by a vote of 83 to 52 on May 29, 2026, so it never became law.
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Instruments on record
5 instruments on record, grouped by the family of approval each one governs.
Land use
Who decides whether a data center may occupy a site, and through what approval?
Act 250, state land use and development permit
In force
10 V.S.A. chapter 151
Effective 1970-04-04 · Applies to both
Vermont's land use and development law requires a Land Use Review Board permit for a "development," which for commercial or industrial construction means more than 10 acres of land in a municipality with permanent zoning and subdivision bylaws, or more than one acre in a municipality without them, among other thresholds.
A data center's construction generally falls within this commercial or industrial development trigger and proceeds to review under the Act's criteria for environmental, infrastructure, and community impacts before a permit issues. Act 250 was added to the statutes by 1969 Act No. 250 (Adj. Sess.), effective April 4, 1970, per that section's own history note, and has been amended many times since.
Source: Full text of law
Energy and grid
What authorizations govern grid connection and onsite generation?
Certificate of public good, electric generation, storage, and transmission facilities
In force
30 V.S.A. § 248
Effective 1969-04-18 · Applies to both
No company or person may begin site preparation for or construction of an electric generation facility, energy storage facility, or electric transmission facility in Vermont, or exercise eminent domain in connection with one, unless the Public Utility Commission first finds that doing so will promote the general good of the State and issues a certificate of public good.
On-site generation or storage built solely for the owner's own consumption is exempted from this requirement, so a data center's backup generation for its own use falls outside section 248, while grid-connected generation, storage, or transmission built to serve it does not.
The section was added by 1969 Act No. 69, effective April 18, 1969, per its own history note, and has been amended repeatedly since to reach new facility types, including energy storage and ground-mounted solar generation facilities.
Source: Full text of law
Least-cost integrated planning
In force
30 V.S.A. § 218c
Applies to both
Each regulated electric or gas utility must prepare and periodically submit to the Public Utility Commission a least-cost integrated plan for meeting its customers' energy service needs, covering supply, transmission, distribution capacity, and efficiency investments. A large new load such as a data center is a fact a serving utility's least-cost plan and rate filings must account for, though the section itself does not single out data centers or any other class of large customer.
The section was added by 1991 Act No. 99, section 2, which carries no effective-date clause of its own in the codified history note; under 1 V.S.A. § 212 a law enacted at a regular session with no specific effective-date clause takes effect July 1 next following passage, so the section commenced July 1, 1991.
Source: Full text of law
Vermont Sustainable Data Centers Act (H.727), vetoed
Dead / withdrawn
H.727, 2025-2026 Regular Session (30 V.S.A. chapter 5, subchapter 3, §§ 281-284, as passed)
Applies to private
H.727, the Vermont Sustainable Data Centers Act, would have added a new subchapter to Title 30 defining a "data center" as a facility that uses or is able to use 20 megawatts or more of power and provides data processing, hosting, or related services under NAICS code 518210, and would have directed the Public Utility Commission to establish a separate ratepayer class and tariff schedule for data centers and to require standardized provisions in any electric-service contract between a data center and its electric distribution company, allocating infrastructure costs to the data center rather than to other ratepayers.
The bill passed both the House and the Senate, but Governor Scott vetoed it, and the House sustained the veto by a vote of 83 to 52 on May 29, 2026, so it never became law and Vermont currently has no large-load-specific electricity tariff or contracting requirement for data centers.
Source: Full text of law
Air and operations
What permits govern backup generators and ongoing emissions?
Air pollution control construction and operating permits
In force
10 V.S.A. chapter 23
Applies to both
The Agency of Natural Resources permits the construction or modification of an air contaminant source and separately issues operating permits for existing sources.
A data center's backup diesel or gas generator fleet is an air contaminant source and requires a construction permit under section 556 and, where applicable, an operating permit under section 556a. Section 556 was added by 1967 Act No. 310 (Adjourned Session), section 6, which carries no effective-date clause of its own in the codified history note; under 1 V.S.A. § 212 a law enacted with no specific effective-date clause takes effect July 1 next following passage, so the section commenced July 1, 1968.
Source: Full text of law
Every entry cites the instrument it describes.
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