Data centers in Connecticut

📜 State laws

Public Act 21-1 (2021): big tax breaks for data centers that invest in Connecticut · March 4, 2021
Signed by Governor Lamont on March 4, 2021 (in effect July 1, 2021). The state economic development agency (DECD) can sign 20- or 30-year deals with data centers that invest at least $50 million (in an enterprise zone or federal opportunity zone) or $200 million (elsewhere). Those data centers do not pay state sales tax on equipment, building services or electricity, and do not pay local property tax on their buildings and computer equipment. Before building, the owner must sign a 'host municipality fee agreement' with the town, which sets what it pays the town instead of property tax. Both deals must let the state and town take back the tax break if the data center breaks its promises. This law is still in force. See 'Tax breaks' below. Source

SB 245 (2026): end the data center tax breaks (did not pass) · May 6, 2026
Would have ended the 2021 data center tax breaks. The Energy and Technology Committee held a hearing on February 24, 2026, and on March 17 sent it to the Finance Committee, where it stopped. The session ended May 6, 2026, without a vote. At the hearing, the Office of Consumer Counsel asked lawmakers to give data centers their own electric rate class and make them post money guarantees and exit fees, so other customers do not pay for grid upgrades if a data center fails or leaves. Source

HB 5469 (2026): data centers would bring their own new power (did not pass) · May 6, 2026
Would have covered customers using 50 megawatts or more, like big data centers. Those connecting to the grid after October 1, 2026, would have had to buy power from new power plants for all their expected use, and to guarantee payment for at least 85% of the power they asked for over at least 10 years. Power plants feeding a data center directly (like a data center next to the Millstone nuclear plant) would have needed a state license. The committee approved it on March 19, 2026, but the House never voted. Lawmakers said interest faded because Connecticut's high power prices were already keeping big developers away. Source

SB 1292 (2025): energy and water reports for AI data centers (did not pass) · June 4, 2025
Would have required owners of artificial intelligence data centers to report to the state every three months and set up a study of energy efficiency rules for them. The committee approved it, and it was put on the Senate calendar on April 7, 2025, but the Senate never voted on it. Source

SB 299 (2024): utility regulators would study data centers and the grid (did not pass) · May 8, 2024
Would have required the Public Utilities Regulatory Authority (PURA) to study how large data centers affect the reliability of the power grid. The Senate passed an amended version on May 3, 2024, but the House did not vote on it before the session ended. Source

💡 Who pays for the power

No special electric rate for data centers yet · Oct 8, 2026
Connecticut has no special electric rate or extra rules for very big power users like data centers. A bill to create one (HB 5469) did not pass in 2026, and we found no case about data centers or 'large loads' in PURA's list of docket notices (checked October 8, 2026). In September 2026 Governor Lamont said Connecticut is the wrong place for huge AI data centers because they could raise power prices, and that he would want PURA to review any proposal that brings its own power and water. In September 2026 he also said he was open to working with lawmakers in 2027 on rules for data centers. Source

Eversource asks for a big rate increase (PURA Docket 26-05-10) · July 14, 2026
On July 14, 2026, Eversource (Connecticut Light and Power) asked PURA for a $727 million a year increase in its delivery rates. The Attorney General says the average home bill would go up about 18%. In May, Eversource had said it would ask for about $503 million (about 13% for a typical home). New rates, if approved, would start in July 2027. This case is not about data centers. Bills dropped about 10% from June 2025 to June 2026, mostly because the state cut the 'public benefits' charge. Source

💵 Tax breaks

Data Center Tax Incentive Program (since 2021) · July 1, 2021
Run by DECD's Office of Data Infrastructure Administration and Security. A data center that invests at least $50 million (enterprise zone or federal opportunity zone) or $200 million (elsewhere) within 5 years can get a 20-year deal; $200 million or $400 million gets 30 years. It pays no state sales tax on servers, cooling, generators, other equipment, building services and all of its electricity, and no local property tax on its buildings, servers and backup generators. The town gets paid through a host municipality fee agreement that must be signed before building starts. The data center also pays DECD an annual fee of up to $50,000 while it is reaching its investment. As of September 2026 only one company had used the program: Cigna, for a $386 million upgrade of its existing Windsor data center (approved in 2022). Cigna got $23 million in state sales tax breaks and kept paying Windsor property tax. Source

🤐 Secret deals and public records

Public records law (Connecticut Freedom of Information Act) · 2026
Every person has the right to see and copy public records. You do not need to live in Connecticut or say why you want them. Ask the town or agency in writing for copies. If the agency does not give the records or say no in writing within 4 business days, that counts as a denial. Copies cost at most 25 cents a page from state agencies and 50 cents a page from towns and other agencies. If you are denied, you can appeal to the Freedom of Information Commission within 30 days of the denial. It is free to appeal. Source

What a data center company can keep secret · 2026
The public records law lets agencies hold back trade secrets and business or financial information that a company gave 'in confidence' when no law required it. Agencies can also hold back engineering or cost estimates for land the government is buying, until the deal is done. We did not find any Connecticut law about secret deals (NDAs) between towns and data center developers. Source

Host fee agreements with towns · 2026
To get the state tax breaks, a data center must sign a host municipality fee agreement with the town before it starts building. These agreements are signed by the town and are generally public. Some towns have posted theirs, such as Beacon Falls (December 2021). Ask your town clerk or first selectman for a copy. Source

💧 Water

Who approves the water a data center uses · 2026
Taking more than 50,000 gallons a day from wells, rivers or lakes needs a water diversion permit from the Department of Energy and Environmental Protection (DEEP). DEEP must look at the effect on the environment and decide whether the use is needed and fits long-term water plans. A data center that buys water from a town or water company uses that supplier's permits instead. Source

🌫️ Air and generators

Diesel backup generators (DEEP Bureau of Air Management) · 2026
A generator that could release 15 tons or more a year of any main air pollutant needs an air permit from DEEP (a 'New Source Review' permit, which takes 6 to 12 months). Emergency-only generators can skip that permit if they run no more than 300 hours a year and burn ultra-low-sulfur diesel. Then DEEP does not even need to be told. Proposed air permits are posted on DEEP's public notice page, usually with 30 days for comments. Source

Power plants, fuel cells and big power lines (Connecticut Siting Council) · 2026
The Connecticut Siting Council, not the town, decides where power plants, fuel cells, and power lines and substations of 69 kilovolts or more can go. Emergency backup generators are not included. Several data center plans in Connecticut (for example in Bristol and Colchester) asked the council to approve on-site fuel cells. The council posts pending cases online and holds public hearings. Source

🙋 How to have your say

Who decides a data center near you · 2026
Connecticut has no county governments. Each of the 169 towns and cities (and some boroughs) makes its own zoning rules through a Planning and Zoning Commission (or a separate Zoning Commission). That commission writes the rules, holds public hearings and votes on special permits and site plans. A town meeting or town council may need to approve a host fee (tax) agreement. State bodies decide other parts: the Siting Council (power plants, fuel cells, big power lines), DEEP (water and air permits) and PURA (electric rates). Source

Neighbors can force a two-thirds vote on a zone change · 2026
If owners of 20% or more of the land in a proposed zone change, or of the land within 500 feet of it, sign a protest and file it at or before the hearing, the zoning commission needs a two-thirds vote of all its members to approve the change. Source

Appeal deadline: 15 days · 2026
If you are harmed by a zoning decision (for example, you live next to the site), you can appeal to Superior Court. The appeal must be served within 15 days from the day the town publishes the notice of decision, so watch the town's legal notices. A lawyer is usually needed. Source

Ask for records · 2026
Send a short written request (email is fine) to the town clerk or agency. Name the records you want, for example 'all emails and agreements with [company] about a data center since January 2025'. They must answer within 4 business days. If they do not, appeal to the Freedom of Information Commission within 30 days. Source

Comment at the utility commission (PURA) · 2026
You can comment on any PURA case. Write the docket number (for example 26-05-10 for the Eversource rate case), your name and home address. Do not include account or phone numbers. Send it through PURA's web filing system or by email to PURA's Executive Secretary. Comments are posted publicly. Source

Take part in a Siting Council case · 2026
For fuel cells, power plants and big power lines, follow the case on the Siting Council's 'Pending Matters' page. You can send written comments (called limited appearance statements) and speak at public hearings. These statements can be seen at the council's office. Source

Comment on DEEP water and air permits · 2026
DEEP posts proposed permits on its 'Proposed Individual Permits' page. Comments are usually due within 30 days after the notice is published. The notice says how to send comments and whether a hearing can be held. Source

🧾 Help with your bills

Connecticut Energy Assistance Program (CEAP) · Sept 1, 2026
Helps pay heating bills for the 2026-2027 season. You may qualify if you get SNAP, SSI or veterans benefits, or your household income is at or below 60% of state median income (for example $48,714 for 1 person or $93,681 for 4). Benefits are $355 to $705 and are paid to your utility or fuel company. Apply online, by phone, email or in person through your local community action agency. You must apply again every year. Source

Hardship protection: no shut-offs in winter · 2026
If you get CEAP, SNAP, TANF or unemployment benefits, or your income is at or below 60% of state median income, ask Eversource or UI for 'financial hardship' status. Your electricity cannot be shut off from November 1 to May 1. You can also get payment plans, such as the Matching Payment Program, and a low-income discount rate. Call your utility, or call 211 for other help. Source

📞 Who to contact

Public Utilities Regulatory Authority (PURA) · 2026
Sets electric rates and rules for Eversource and UI. Takes public comments in its cases. Source

Office of Consumer Counsel (OCC) · 2026
Speaks for utility customers in PURA cases. Asked lawmakers in 2026 for a separate rate class and money guarantees for data centers. Source

Connecticut Siting Council · 2026
Decides where power plants, fuel cells, and big power lines and substations go. Holds public hearings. Source

Department of Energy and Environmental Protection (DEEP) · 2026
Issues water diversion and air permits and posts proposed permits for comment. Source

DECD Office of Data Infrastructure Administration and Security · 2026
Runs the data center tax break program and signs the tax deals. Source

Freedom of Information Commission · 2026
Hears appeals when a town or agency refuses public records. Source

Office of the Attorney General · 2026
Represents the public in utility rate cases, such as the 2026 Eversource case. Source

Department of Social Services: Heating Help · 2026
Runs the Connecticut Energy Assistance Program with local community action agencies. Source