Gubernatorial candidates discuss data center policies
Connecticut's gubernatorial candidates are debating data center policies, specifically a special tax credit established five years ago. State Senator Ryan Fazio calls for its repeal, arguing it's special treatment for a cash-flush industry, while Governor Ned Lamont suggests such AI data centers are unlikely in Connecticut due to high energy and land costs. Both agree that any potential AI data centers should bear the cost of increased energy usage.
The issue of data center development took center stage in Connecticut's gubernatorial race, with State Senator Ryan Fazio, the GOP nominee, advocating for an end to a special tax credit for data centers. This incentive, established five years ago with the support of incumbent Democratic Governor Ned Lamont, provides up to 30 years of sales and property tax breaks for firms investing tens or hundreds of millions in data centers.
Fazio criticized the program as special treatment for a lucrative industry, noting that only one company, Cigna, has utilized it so far, not the large AI data center developers. Governor Lamont, while acknowledging the current AI boom, clarified that the tax credit isn't exclusively for AI data centers but also for more conventional IT investments. He also expressed general opposition to "thousand-acre" AI data centers in Connecticut, citing the state's high energy and land costs as prohibitive factors, making them unlikely to build there.
Both candidates, however, agreed that if an AI data center were ever to be built in Connecticut, the developer should be responsible for covering increased energy usage and other externalities, effectively requiring them to "bring their own power." Governor Lamont also stated he would sign a bill to repeal the tax incentive if it were to land on his desk.