H.727, known as the Vermont Sustainable Data Centers Act, establishes a regulatory framework for the deployment of sustainable data centers in Vermont. The bill introduces a new subchapter in the Vermont Statutes Annotated that defines data centers as facilities using 20 megawatts or more of power for data processing. It emphasizes responsible growth that benefits existing electric ratepayers and mandates that data centers enter into large load service equity contracts with electric companies, subject to approval by the Public Utility Commission. This aims to ensure equitable cost allocation and protect other ratepayer classes from financial exposure. The act also includes provisions for demand-side management, requiring data centers to minimize their impact on the electric system and conduct site suitability analyses.

The bill further regulates water usage and environmental impact, particularly focusing on cooling systems. Data centers must implement closed-loop cooling systems or alternative systems approved by a District Commission, and they are required to monitor discharges for per- and polyfluoroalkyl substances (PFAS) while complying with Vermont Water Quality Standards. Additionally, the Secretary of Natural Resources must submit a report by January 1, 2027, recommending standards for PFAS in data center discharges, and the Public Utility Commission will prepare a report on regional renewable electric generation market conditions by January 15, 2027. The act will take effect upon passage and apply to both new data centers and those seeking to expand, even if they currently operate below the 20 MW threshold.

Statutes affected:
As Passed By the House -- Unofficial: 10-6001
As Passed by Both House and Senate -- Official: 10-6001
As Passed by Both House and Senate -- Unofficial: 10-6001