Bill S.205 proposes a temporary moratorium on the siting and construction of artificial intelligence (AI) data centers in Vermont until July 1, 2030. This moratorium aims to protect public safety and welfare while allowing the Public Utility Commission to study the potential impacts of AI data centers on the state. The bill defines an AI data center as a facility requiring more than 100 megawatts of new load for AI-related activities and establishes a framework for the Commission to investigate the construction and operation of such centers. The Commission is tasked with reporting its findings and recommendations to relevant legislative committees by January 15, 2027.

In addition to the moratorium, the bill outlines specific considerations for the Public Utility Commission's investigation, including energy load requirements, water consumption, environmental impacts, and economic effects on Vermont. The Commission is also directed to explore strategies for maintaining grid reliability, promoting energy efficiency, and ensuring that existing electric ratepayers are not adversely affected by the increased demand from AI data centers. The act is set to take effect upon passage.