GOP’s Fazio criticizes data center deal but not data centers
Republican gubernatorial candidate Ryan Fazio criticized a five-year-old Connecticut law that provided a $17 million sales tax rebate to Cigna for its Windsor data center. Fazio is advocating for ending such special tax benefits and requiring data centers to provide their own power, although he is not calling for a general moratorium on data centers.
Ryan Fazio, a Republican gubernatorial candidate and the ranking Republican on Connecticut's Energy and Technology Committee, has publicly criticized a bipartisan economic development law signed by Gov. Ned Lamont five years ago. Fazio specifically targeted a sales tax rebate provision that allowed Cigna to save an estimated $17 million on improvements to its data center in Windsor, arguing it represents "unfairness and unaffordability" for taxpayers.
While Fazio stated he is not advocating for a blanket ban or moratorium on data centers, he proposed ending the special tax benefit, implementing "guardrails" on the industry, and requiring data centers to provide their own power to mitigate their impact on electricity rates. Sen. James Maroney, a Democrat, defended the 2021 law, explaining that it predated the current boom in hyperscale AI data centers and was intended to encourage biotech and insurance companies to invest in existing facilities. Maroney also noted that many states offer similar tax incentives for data centers.