Vermont Towns Move to Block Data Centers Amid Concerns Over Growth and Infrastructure

Vermont communities are taking local action to limit large data centers as concerns grow over the potential impact of these facilities on electricity, water, land and local infrastructure.

Morristown became the third Vermont community to adopt restrictions on large data centers last week, approving a two-year moratorium on applications for data centers and other businesses considered “high-impact.” The action was reported by Seven Days on September 9.

The Morristown rules target businesses that consume more than 10 megawatts of power, use more than 57,600 gallons of water per day, create more than 10 acres of impervious surface, discharge hazardous waste or generate persistent noise above 70 decibels.

The town plans to use the two-year pause to develop zoning regulations addressing these types of projects.

Towns Acting as State Debate Continues

Morristown's decision follows similar moves by other Vermont communities. Local officials are acting as the state continues to debate how data centers should be regulated.

Gov. Phil Scott vetoed legislation earlier this year that would have established additional requirements for data center development. The Legislature subsequently sustained the veto.

The debate has become particularly important as the rapid expansion of artificial intelligence increases demand for large computing facilities.

Vermont has not seen the large-scale data center construction occurring in some other states, but officials and residents are increasingly discussing whether the state should establish rules before major projects are proposed.

Concerns Go Beyond Development

Large data centers can require substantial amounts of electricity and water to operate and cool computer equipment.

That has raised questions about whether existing infrastructure can support such facilities without shifting costs or environmental impacts onto local communities.

Vermont's Secretary of Natural Resources, Julie Moore, recently told a congressional committee that data center operators should help pay for the water infrastructure impacts they create and that potential effects on nearby water sources should be studied.

For Vermont towns, the issue is therefore not simply whether a data center should be built.

It is also about how large-scale development fits into local infrastructure, land-use plans and community priorities.

For now, Morristown's moratorium gives the town time to develop permanent rules before deciding whether these projects should be allowed and under what conditions.

The growing number of local restrictions suggests Vermont's data center debate is likely to remain an important issue for communities considering future development.