Vermont Data Center News

May 13, 2026

AI Infrastructure’s Next Bottleneck May Be Public Acceptance

Melissa Farney (Data Center Frontier) argues that AI data center expansion has become a first‑order political and permitting constraint, citing recent legislative and local actions including the “Artificial Intelligence Data Center Moratorium Act” proposal and Maine’s LD 307 veto.

Main point: The article states that AI‑oriented data center growth is now a core political and permitting risk for operators, not just a siting or PR issue, citing industry forecasts such as JLL’s ~$710 billion North America capex projection to 2026 and project‑level impact estimates from Data Center Watch (approximately $18B blocked and $46B delayed, totalling $64B) and a New York Times compilation of $156B across 48 AI projects disrupted in 2025.
Key supporting facts & recent actions: Federal and state moves are already concrete: Sen. Bernie Sanders and Rep. Alexandria Ocasio‑Cortez unveiled the “Artificial Intelligence Data Center Moratorium Act”; Maine’s LD 307 (would have paused data centers >20 MW through Nov 1, 2027) was vetoed by Gov. Janet Mills; local utilities like the Ypsilanti Community Utilities Authority (YCUA) imposed a 12‑month moratorium on new water/sewer hookups in April 2026. The article also highlights New Jersey bill S731/A796 (require 85% of requested service for 10 years for very large loads) as an example of state-level cost‑allocation tools.

Apr 28, 2026

California Utilities Have a Solution to Soaring Energy Prices: More Data Centers

PG&E is advancing a policy and commercial push to attract large data center loads as a means to lower electric rates for California ratepayers.

Main announcement/action: PG&E has celebrated the delivery of its first large data-center customer in San Jose and is actively courting hyperscalers; the utility announced a rate decrease in March 2026 and asserts that each 1 GW of data center load could reduce electric rates by 1–2%, while forecasting up to 12.6 GW of potential data-center load from current applications (enough to power 8.4 million homes). CPUC also approved Electric Rule No. 30 (July 2025) requiring applicants to pay transmission upgrade costs upfront to protect ratepayers.
Background and other details: Regulatory and research sources (Brattle Group and LBNL) show California’s retail electricity prices rose markedly 2019–2024 (California at 30.29 cents/kWh); Cal Advocates warns transmission upgrades could run in the billions and recommends cost-responsibility rules. State-level bills (Sen. Scott Padilla, March) would streamline environmental review (ELDP incentives) and impose tariffs to ensure data centers offset costs; a March presidential Rate Payer Protection Pledge was signed by major tech firms (Amazon, Google, Meta, Microsoft, OpenAI, Oracle, xAI).

Apr 27, 2026

Rethinking Utility Incentives and Business Models in the Age of Distributed Energy

Deep Patel (founder and CEO of Gigawatt Inc.) argues that utility incentive structures must be realigned to value distributed energy resources (DERs) and to shift utilities from capital builders to orchestrators of a distributed grid.

Main announcement/action: The article calls for regulatory and policy changes to treat distributed energy as a core capacity resource, redesign rate structures and compensation mechanisms to reflect DER system value, and shift utility incentives from capital deployment to outcome and performance-based compensation. It cites concrete utility programs: Con Edison’s Brooklyn-Queens Demand Management (used DERs to defer a substation), Hawaiian Electric customer battery programs, and Green Mountain Power customer-sited storage as examples of implementation.
Background and details: The commentary highlights accelerating load drivers — electrification, data centers, and AI infrastructure — and recommends operational changes including feeder-level visibility, improved forecasting for net load, and aggregated DER deployment. It stresses expanding access via community solar and shared storage and integrating DERs into utility planning to defer infrastructure upgrades.

Apr 15, 2026

Silicon Valley Progressive Democrat Calls for ‘New Social Contract’ for AI

Rep. Ro Khanna has announced proposals for a five percent “billionaire tax” and set out his AI stance and data center conditions during remarks at the National Press Club.

Main announcement: Khanna proposed a five percent tax on billionaires to help fund progressive policies, saying reductions in defense spending plus the billionaire tax would cover increased entitlement spending; he made these remarks at the National Press Club and referenced representing a district with $20 trillion in wealth.
Background and additional details: Khanna described himself as an “AI democratist”, said he does not support a moratorium on data center construction, and called for data centers to provide renewable energy, adopt dry cooling, pay for electricity, avoid excessive water use, and invest in local community infrastructure; he noted conversations with Nvidia CEO Jensen Huang and cited examples from Finland and Singapore.

Apr 7, 2026 · Information Technology and Innovation Foundation

Four Reasons New AI Data Centers Won’t Overwhelm the Electricity Grid

Robin Gaster argues that the AI Data Center Moratorium Act introduced by Sen. Bernie Sanders and Rep. Alexandria Ocasio-Cortez is unnecessary and misunderstands the drivers of electricity prices.

Main point: The author contends the moratorium is unnecessary because electricity price increases are driven largely by fuel costs (especially natural gas), capacity/backup costs, and utility capex, and there are four practical pathways (slower buildout, demand management, bring-your-own-power/BYOP, and utility contract structures) to add data center load without raising rates. The piece explicitly rejects emergency federal action and frames the Sanders–Ocasio-Cortez bill as an inappropriate response.
Background and specifics:>240 GW of data center announcements (mostly planned to 2030) is cited but only ~1/3 being built; OpenAI plans $600 billion in data center investment by 2030 vs ~$20 billion in revenues; PJM capacity prices rose from ~$60/kWh (2024) to > $300/kWh (2025); typical permit timelines 6–18 months, design/construction 20–54 months, queue times in PJM up to 8 years; contractual protections noted include 15-year minimum contracts, ~85% minimum load guarantees, exit fees, and “hold harmless” guarantees used by some hyperscalers.

Apr 4, 2026

Maine Set to Become First State to Halt New AI Data Centers

Maine lawmakers have passed a bill to pause new large-scale data center projects of 20 megawatts or more until November 2027.

Main action: The Maine House passed legislation to pause new data center projects ≥20 megawatts (roughly enough to power 15,000–20,000 homes) until November 2027; the bill is expected to advance in the Maine Senate where Democrats hold a majority and Gov. Janet Mills has signaled support with potential exemptions for projects already in progress.
Context and details: The proposal was first reported by The Wall Street Journal and aims to study impacts on electricity costs, the power grid, land and water; U.S. data centers used about 183 terawatt-hours in 2024 (>4% of U.S. power use) with that figure expected to more than double by 2030. The issue has federal attention — President Donald Trump has urged tech firms to cover more infrastructure/energy costs, and Sen. Bernie Sanders and Rep. Alexandria Ocasio-Cortez have proposed national legislation to temporarily pause data center construction. Similar moratoria proposals are under consideration in at least 10 other states including New York, South Carolina, and Oklahoma.

Mar 30, 2026

It’s Time to End Data Centers’ Massive Tax Break

The Piedmont Environmental Council (PEC) is urging Virginia legislators and Governor Spanberger to eliminate or phase out the $1.9 billion annual sales tax exemption for data center equipment and is mobilizing constituents to contact their representatives before the legislature reconvenes.

Main announcement/action: PEC asks Virginians to urge the General Assembly and Governor Spanberger to end or phase out the $1.9 billion annual sales tax break for data centers; the Senate’s budget would phase out the exemption while the House keeps it. Key dates and actions: reconvene April 23 (legislature), advocacy kick-off Zoom call March 30 at 6:30 p.m. (register link provided), and a “Send Your Email” action page to contact delegates, senators and the governor today.
Background and details: PEC cites Dominion Energy’s 70 GWs of load requests and ongoing monthly >1 GW requests, estimates of over $100 billion in new generation/transmission/substation infrastructure (including $30 billion for transmission and a 114-mile, 765 kilovolt proposed line), and an independent PEC analysis estimating $53–$99 million/year in health damages from on-site fossil generation at a Loudoun County facility. Also summarizes bill statuses (HB153/SB94; SB553/HB496; HB507; SB619/HB155; SB339/HB658).

Mar 27, 2026

Sanders, AOC Introduce Bill to Pause Data Center Growth

Rep. Alexandria Ocasio-Cortez and Sen. Bernie Sanders introduced a bill to pause new data center construction until worker, consumer and environmental safeguards are implemented.

Action: The bill would impose a moratorium on new data centers pending implementation of safeguards to address artificial intelligence risks, worker protections, consumer protections, and environmental impacts; sponsors are Rep. Alexandria Ocasio-Cortez (D-N.Y.) and Sen. Bernie Sanders (I-Vt.) and the legislation is described as unlikely to advance in the House or Senate.
Background/details: The piece notes rising electricity use (a typical AI-focused data center consumes as much electricity as 100,000 households) and references the Broadband Equity, Access and Deployment (BEAD) program’s $21 billion nondeployment funds as a potential source states might use for data center development; voices quoted include Sen. John Fetterman, President Donald Trump, Chris Jordan (National League of Cities), and Jacob Levin (CTC Technology & Energy).

Mar 11, 2026

General Assembly Budget Conferees Need to Invest in Quality of Life, Not Big Tech

The Piedmont Environmental Council (PEC) has called on Virginia lawmakers to eliminate or substantially limit the sales tax credit on data center equipment to redirect revenue to public services.

Main action: PEC submitted a letter to General Assembly leadership and budget conferees requesting elimination or phased reduction of the sales tax exemption on data center equipment, arguing the exemption cost more than $1.9 billion in FY2025 and could have raised state revenue from $31.2 billion to $33.1 billion if collected. The letter identifies priorities for redirected revenue: water supply and wastewater treatment, transportation and transit, schools, childcare, and food security.
Background and details: PEC cites Dominion Energy data that it is receiving requests for ~10 additional data center applications monthly totaling 2–3 GW, bringing cumulative demand to 70 GW, while current peak demand is 24 GW with >36% electricity imports. PEC estimates Dominion will need to invest over $100 billion in generation, transmission and substation infrastructure (including nearly $30 billion for transmission) to meet the backlog over the next ten years.

Feb 27, 2026 · RMI

Why Communities Can and Must Consider Electricity Affordability and Risk Together

Stephen Abbott of RMI argues that communities should consider electricity affordability and risk together and pursue diverse, distributed energy portfolios rather than relying solely on large centralized fossil-fuel generation.

Main announcement/action: Communities and local governments should adopt portfolio-based energy strategies (energy efficiency, batteries, renewables, virtual power plants, and other flexible resources) to reduce price volatility and operational risk; RMI highlights concrete examples including data center-driven load growth of 32% by 2030, and Burlington’s 59,204 MWh annual reduction from its energy efficiency program.
Background and details: The piece cites recent cost and risk evidence: ComEd provided $277 million (2024) for efficiency programs yielding an estimated $3.2 billion in customer savings; reliance on fossil fuels produced at least $390 million in excess costs for communities around the Prairie State Energy Campus over four years; typical monthly fuel charges in Florida doubled from ~$20 to ~$40 (2020–2023); utilities such as TVA are proposing large new gas facilities as a conventional response.

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