Connecticut

1) Incentive programs

Data Center Tax Incentive Program (CGS 32-286)

• Program status after the 2026 session: Connecticut’s Data Center Tax Incentive Program remains in force; SB 245, the 2026 bill that would have stopped DECD from accepting data-center incentive applications on or after July 1, 2026, had no action after March 23 referrals to the Finance, Revenue and Bonding Committee and did not become a public act in the 2026 regular session. Connecticut General Assembly SB 245 bill text, 2026-02-19; Connecticut General Assembly SB 245 bill status, 2026-03-23
• Statutory authority: Connecticut General Statutes Section 32-286 authorizes DECD to enter into tax-incentive agreements with qualifying data centers. Connecticut DECD, accessed 2026-07-17
• Eligibility thresholds: Minimum qualified investment is $50 million for a data center in an enterprise zone or federal opportunity zone and $200 million elsewhere, with the investment due by the fifth year of the DECD agreement. Connecticut DECD, accessed 2026-07-17
• Agreement term: Agreements are generally 20 years and may extend to 30 years if investment reaches $200 million in an enterprise/opportunity zone or $400 million elsewhere. Connecticut DECD, accessed 2026-07-17
• Tax exemptions (state and local): The program provides sales and use tax exemptions for specified goods and services, property tax exemptions for certain real property and equipment, and an exemption from any financial transactions tax the state may impose in the future. Connecticut DECD, accessed 2026-07-17
• Local host fee requirement: Owners and developers must enter host municipality fee agreements before beginning the capital project. Connecticut DECD, accessed 2026-07-17
• Clean energy conditions: The current DECD program description does not condition the tax incentive on clean energy procurement or on-site generation, although 2026 bills and testimony focused heavily on “bring your own power” and ratepayer protections. Connecticut DECD, accessed 2026-07-17; Connecticut General Assembly Energy and Technology Committee SB 245 JF report, 2026-03-26

2026 incentive changes

• PA 26-122 changed administration, not the core incentive: Public Act 26-122 amended CGS 32-286(c) by replacing references to a separate Office of Data Infrastructure Administration and Security with DECD’s direct responsibility to serve as liaison for applicants and qualified data centers; it left the investment thresholds, 20-/30-year terms, and tax exemptions intact. Connecticut Public Act 26-122, 2026-06-02; Connecticut General Assembly SB 307 bill status, 2026-06-02
• OFA treated SB 307 sections on DECD office designations and reporting as minor or technical changes with no anticipated state fiscal impact. Connecticut OFA fiscal note SB 307, 2026-05-11

Other incentive references

• OLR report 2025-R-0003 identifies Connecticut and Massachusetts as the New England states with data-center-specific tax incentives and describes Connecticut’s program as a 20- or 30-year DECD agreement with sales/use and property tax exemptions. Connecticut OLR 2025-R-0003, 2024-12-20
• OFA’s original 2021 fiscal note for HB 6514 remains the most specific state fiscal estimate located for the Connecticut program. Connecticut OFA fiscal note HB 6514, 2021-02-24

2) Restrictions and moratoriums

Statewide restrictions / pauses

• No statewide data-center moratorium was enacted in 2026. The statewide 2026 measures that advanced were SB 245, an incentive-repeal bill that died after Finance referrals, and HB 5469, a large-load/co-location framework that died on the House calendar. Connecticut General Assembly SB 245 bill status, 2026-03-23; Connecticut General Assembly HB 5469 bill status, 2026-04-07

Local moratoriums / pauses

• Morris: The Planning and Zoning Commission posted/adopted a moratorium on battery energy storage systems and data centers in May 2026. The posted moratorium text prohibits the town’s land-use authorities from accepting, processing, hearing, or approving applications for establishing, constructing, installing, or expanding data centers, and the text states a 12-month duration from the effective date unless earlier terminated or extended; some public-facing labels and press coverage describe a “two-year” moratorium, so the legal text should be checked before citing duration. Town of Morris Planning and Zoning Commission document index, 2026-05-20; Town of Morris Planning and Zoning Commission moratorium text, 2026-03-23; Connecticut Post, 2026-05-23
• West Haven: The City Council unanimously approved a one-year moratorium on new data center development on June 8, 2026, to give the city time to draft zoning language; the moratorium exempts incidental server rooms. New Haven Register, 2026-06-10
• New Haven (proposed, not enacted as of July 17): File LM-2026-0285 proposes a 12-month citywide moratorium while the city studies zoning, environmental, utility, noise, health, and safety standards. The Board of Alders referred the proposal to committee on July 6; the legislative record still listed it as In Committee on July 17. City of New Haven Board of Alders file LM-2026-0285, 2026-07-06; City of New Haven proposed ordinance text, 2026-06-30

Zoning / land use restrictions (local)

• Municipal zoning remains central: Connecticut has not preempted local data-center siting; local commissions are using special-permit rules, project-specific approvals, and moratoria. New Haven Register, 2026-06-10; Town of Morris Planning and Zoning Commission moratorium text, 2026-03-23
• Wallingford example: Wallingford approved a zoning text change allowing data centers in the Watershed Interchange district, subject to special permit review and building-size caps of 250,000 sq ft per parcel and 400,000 sq ft districtwide. CT Insider, 2024-12-12; Town of Wallingford Planning and Zoning Commission materials, 2024-10-21
• Bristol example: Bristol created a zoning pathway for data centers in 2025. The Inland Wetlands and Watercourses Commission approved application 2066 for the Riverside Avenue proposal on April 6, 2026, with stipulations; on July 14 the City Council unanimously asked the Zoning Commission to reduce the existing 250,000 sq ft cap and consider special-permit review for “micro cloud” centers below 15,000 sq ft and minimum separation distances. The requested zoning changes remained prospective, with Zoning Commission consideration expected in August. City of Bristol Inland Wetlands legal notice, 2026-04-06; The Bristol Edition, 2026-07-16

Environmental constraints (statewide frameworks)

• Water withdrawals: DEEP’s Water Diversion Program generally covers withdrawals of 50,000 gallons or more in a 24-hour period from groundwater, surface water, or both. Connecticut DEEP Water Diversion Program, accessed 2026-07-17
• Water diversion reporting: Authorized diversions above 50,000 gallons per day must submit annual reports with daily water-use data. Connecticut DEEP Water Diversion Reporting, accessed 2026-07-17

3) Local governance

• Host municipality fee agreements remain the required local fiscal mechanism for qualified data centers under the state incentive program. Connecticut DECD, accessed 2026-07-17
• Local pause-and-study approach: Morris and West Haven enacted moratoria, while New Haven referred a 12-month proposal to committee, to develop standards addressing energy, water, cooling, generators, noise, public health, safety, and land-use compatibility. Town of Morris Planning and Zoning Commission moratorium text, 2026-03-23; New Haven Register, 2026-06-10; City of New Haven proposed ordinance text, 2026-06-30
• Project-specific approvals: Bristol’s application materials describe a two-story building with a 7,279 sq ft footprint (approximately 15,000 gross sq ft), a separate fuel-cell compound, 4 MW of on-site generation, and closed-loop liquid cooling. The Connecticut Siting Council approved only the fuel-cell installation; the data-center building remains subject to Bristol land-use and building approvals. City of Bristol Inland Wetlands legal notice, 2026-04-06; City of Bristol Mayor’s Office, 2026-04-22; ReNew Riverside site plan, 2026-01-15

4) Legislative and regulatory activity (2024-2026)

2026 bills and final status

2025 bills targeting AI data centers

• SB 1292 (2025) would have required AI data-center quarterly reporting to DEEP and a study/regulations on water and energy efficiency; it reached File 538 and the Senate calendar but was not enacted. Connecticut General Assembly SB 1292 bill status, 2025-04-07
• HB 5076 (2025) proposed energy and water efficiency requirements for AI data centers but received no action after referral to Energy and Technology on January 10, 2025. Connecticut General Assembly HB 5076 bill status, 2025-01-10

Legislative research activity

• OLR 2025-R-0164 reviews energy impacts of data centers and state policy responses including large-load tariffs, incentive conditions, fees, and behind-the-meter generation pathways. Connecticut OLR 2025-R-0164, 2025-10-14
• Federal/regional spillover: Connecticut Senator Richard Blumenthal co-sponsored federal “bring your own power” legislation for data centers of 20 MW or more, reinforcing the same ratepayer-protection theme in HB 5469 and SB 245 testimony. CT Mirror, 2026-02-26
• Regional large-load tariff proceeding: On June 18, FERC opened Docket EL26-72, preliminarily finding ISO-NE’s existing tariff potentially unjust or unreasonable because it lacks clear large-load study, operating, upgrade-cost, cost-recovery, financial-security, and co-location provisions. FERC ordered ISO-NE and participating transmission owners to justify the tariff or propose changes within 60 days and ordered a resource-adequacy report within 30 days; this was a pending show-cause process, not a final large-load tariff, as of July 17. Federal Energy Regulatory Commission Order, 195 FERC ¶ 61,215, 2026-06-18
• Six-state coordination: Connecticut joined the other New England states on July 1 in committing through NESCOE to coordinated work on large-load integration, consumer protection, reliability, infrastructure cost allocation, and regional affordability. New England States Committee on Electricity, 2026-07-01

5) Notable projects and operators

Cigna / Windsor incentive user

• Press reporting in March 2026 said Cigna was the only company to use the Connecticut data-center incentive since 2021, reporting more than $863 million in investments from 2023 through 2025, about $17 million in tax rebates, and five new jobs. Connecticut Insider, 2026-03-29

Bristol / ReNew Developers / Gray Wolf

• The Riverside Avenue proposal on the former Dodge Village site has a 7,279 sq ft footprint (approximately 15,000 gross sq ft over two stories), 4 MW of on-site fuel-cell power, and closed-loop liquid cooling with no Pequabuck River water withdrawal or discharge. Inland Wetlands approved the application with stipulations on April 6, but the data-center structure still requires local site-plan and building approvals; the July 14 City Council zoning request could tighten the rules that govern this and future projects. City of Bristol Inland Wetlands legal notice, 2026-04-06; City of Bristol Mayor’s Office, 2026-04-22; The Bristol Edition, 2026-07-16

Colchester / ReNew Developers / Gray Wolf

• ReNew disclosed during February legislative testimony that it had projects under development in both Bristol and Colchester. Its Old Amston Road marketing materials describe a brownfield data-center site with a first 5 MW phase and a possible 18 MW second phase, backed by two previously approved fuel-cell pads; the developer states that a buyer still must obtain permits for the data-center building, so the proposal should be treated as an early-stage marketed site rather than a committed build. No project investment figure was disclosed. ReNew Developers testimony on SB 245, 2026-02-24; Connecticut Siting Council Petition 1533A final decision, 2023-11-14; ReNew Developers Old Amston project page, accessed 2026-07-17

Waterford / NE Edge at Millstone

• The Waterford/NE Edge project should be treated as inactive unless revived: a CT Mirror opinion by the founder of Concerned Citizens of Waterford and East Lyme reported that the NE Edge-Waterford host-fee agreement ended due to default and expired according to its terms. CT Mirror, 2026-04-15

Trumbull / CogNovum / 365 Data Centers / Aphorio Carter

• CogNovum’s 80 Merritt Boulevard facility remains an active redevelopment candidate under a $200 million five-year upgrade plan. Town economic-development minutes characterize the work as technological upgrades with only minor physical changes, no new data-center building, and no additional utility infrastructure; after residents raised questions, the First Selectman said on July 10 that the town was compiling a comprehensive project document and would schedule a public meeting. Town of Trumbull Economic and Community Development Commission minutes, 2026-06-02; Town of Trumbull First Selectman’s Office, 2026-07-10

Bloomfield / Atlas Capital Group

• Bloomfield’s Atlas Capital proposal remains a conceptual 2025 proposal: a two-story data center of about 1 million sq ft at 132 Griffin Road North, with more than 900,000 sq ft of data-processing space, a 127,000 sq ft substation, and an estimated 40 jobs. Town of Bloomfield, 2025-07-03; Data Center Dynamics, 2025-07-27

Wallingford / Charter Development Group

• Wallingford enabled data centers in the WI district through zoning, but the zoning change was a prerequisite step rather than final approval of a specific campus. CT Insider, 2024-12-12

Gaps and watchlist (for follow-up)

• PURA and FERC implementation: HB 5469 did not pass, and the PURA active-electric-docket database showed no Connecticut data-center-specific large-load tariff proceeding as of July 17. Track both any state reintroduction and ISO-NE’s filings due in FERC Docket EL26-72. Connecticut General Assembly HB 5469 bill status, 2026-04-07; Connecticut PURA active electric docket database, accessed 2026-07-17; Federal Energy Regulatory Commission Order, 195 FERC ¶ 61,215, 2026-06-18
• Local ordinance texts: Track the final New Haven committee/council disposition and Bristol Zoning Commission action; New Haven’s proposal was still in committee and Bristol’s requested zoning revision had not yet been adopted as of July 17. City of New Haven Board of Alders file LM-2026-0285, 2026-07-06; The Bristol Edition, 2026-07-16
• Project proof points: Verify any revived Waterford/NE Edge filing, Bristol site-plan/building approval, Trumbull incentive application, or Colchester building permit before treating projected investment, load, or jobs as committed. CT Mirror, 2026-04-15; City of Bristol Mayor’s Office, 2026-04-22; Town of Trumbull First Selectman’s Office, 2026-07-10; ReNew Developers Old Amston project page, accessed 2026-07-17