Lamont says no to big data centers in CT
Connecticut Governor Ned Lamont stated that the state is not suitable for massive data centers due to their high electricity demands, which could raise rates for residents. He clarified that previous tax incentives were for smaller, enterprise IT infrastructure, and the state has since pulled back from offering incentives to new data centers. Lamont also emphasized that local communities have the final say on data center projects through planning and zoning.
Connecticut Governor Ned Lamont declared that the state has no place for massive, large-scale data centers, citing concerns about their significant electricity consumption potentially driving up electric rates for residents. He specifically stated that "one of these fifteen hundred-acre big AI data centers, they're never going to be in Connecticut. We're the wrong place for that."
Lamont distinguished these large facilities from smaller, enterprise IT infrastructure projects, like those at Cigna, which had previously received sales tax rebates for improvements to existing data centers in Windsor. He noted that the state had offered tax incentives to new data centers in 2021 but has since withdrawn them due to a lack of interest and the realization that these incentives were intended for specific biotech and insurance company improvements, not large-scale facilities.
His comments came in response to Republican gubernatorial candidate Ryan Fazio, who criticized Lamont's administration and called for an end to data center tax incentive programs, echoing concerns about electricity demand. Governor Lamont affirmed that proposals where developers supply their own water and power could be reviewed on a case-by-case basis by the Public Utilities Regulatory Authority (PURA), but ultimately, local communities retain the right through planning and zoning to reject such projects.