Ct Lawmakers Grill Data Centers Over Electricity And Water Concerns
Connecticut lawmakers are actively questioning the data center industry regarding electricity and water consumption concerns. While the state is not currently a major data center market due to high electricity costs, legislators are exploring policy changes, including potentially ending tax rebates for developers. The Data Center Coalition addressed a state AI panel, defending the industry's economic benefits and commitment to paying for utility services.
Connecticut lawmakers recently interrogated representatives from the data center industry over escalating concerns regarding electricity and water usage. The Data Center Coalition, which represents major tech companies like Google, Amazon Web Services, and Meta, informed a state artificial intelligence panel that Connecticut is not yet a primary destination for data center development, largely due to its high electricity costs, but acknowledged this could change.
Republicans and Democrats in the state legislature are aligning on the issue of regulating data center growth, citing environmental impacts and potential strain on the power grid. State Sen. Norm Needleman (D-Essex), co-chair of the General Assembly’s Energy and Technology Committee, highlighted issues in northern Virginia where rapid data center expansion has led to significant power shortfalls. Critics are also raising alarms about water consumption, although the NCSL suggests data centers use similar amounts to large office buildings or golf courses.
Discussions included the 2021 state tax rebate for data center developers, which Ryan Fazio, a Republican candidate for governor, has pledged to end, arguing that developers should be required to provide their own power. Governor Ned Lamont defended the subsidy, citing Cigna Health's $386 million investment in Windsor as a success. Lawmakers are seeking a balanced approach to manage industry growth while addressing public concerns and economic benefits.