Approval of Connecticut tax credits for data center bypassed required review
State auditors found that Connecticut's DECD commissioner bypassed a required review process to approve significant tax credits for Cigna Corp's data center in Windsor. Cigna received over $17 million in credits for an $863 million investment, creating only five jobs. A bill to eliminate this tax credit program stalled in the recent legislative session, amidst growing public and municipal opposition to data center development in the state.
According to a report by the Auditors of Public Accounts, David Lehman, Commissioner of Connecticut's Department of Economic and Community Development (DECD), approved tax credits for Cigna Corp's data center update in Windsor via email, circumventing the necessary review process. Auditors noted a lack of documentation for program director sign-off, increasing the risk of inappropriate terms. DECD officials acknowledged the lack of formal documentation but stated the Commissioner's direct involvement superseded other approvals, given it was the first data center project under the program.
Cigna Corp is currently the sole beneficiary of the Qualified Data Center Incentives Program, receiving over $17 million in tax credits for an $863 million investment, while creating only five jobs. Despite the minimal job creation, the DECD's 2025 annual report recommended continuing the program due to its "positive impact on state revenue." The program, which offers twenty to thirty years of sales and property tax credits, was approved by the General Assembly in 2021, driven by Commissioner Lehman and Governor Ned Lamont, who initially hoped to attract data centers from New Jersey.
While there was broad support for data centers in 2021, rising energy costs, AI development, and environmental concerns have fueled public backlash in Connecticut and nationwide. Municipalities in Connecticut are now enacting moratoriums on data center construction. A recent legislative bill aiming to eliminate the data center tax credit, citing energy and environmental concerns, received a public hearing but ultimately stalled in committee before the session ended. DECD has since agreed to adhere to established approval procedures for any future data center projects.