Photo of Senator Cassano.

State Senator

Steve Cassano

Representing Andover, Bolton, Glastonbury & Manchester

State Senator Cassano Applauds House Passage of Bill Concerning Incentives for Qualified Data Centers


Today, State Senator Steve Cassano (D-Manchester) applauded the House passage of a bill concerning incentives for qualified data centers in the state. The bill would increase opportunities for Connecticut to become a major leader in a fast-growing industry. In a business world that is becoming increasingly more dependent on the Cloud, these data centers are growing exponentially and Connecticut wants to be part of this future.

“I’m highly encouraged by the House’s passage of this important legislation, which could have positive financial implications in the state for decades to come,” said Sen. Cassano. “We need to approach emerging technologies like these data centers with the utmost focus, as they represent changing trends and stronger economic results. A warmer reception to these locations in our state could lead to many strong years of business growth and resulting economic strength. I’m happy to see the House vote to approve, and will strongly support this legislation when it reaches the Senate.”

House Bill 6514, “An Act Concerning Incentives For Qualified Data Centers To Locate In The State,” would offer sales tax incentives to promote development of data centers. It would waive sales taxes for up to 30 years on data centers that invest at least $400 million in a facility in a qualified opportunity zone in Connecticut, or at least $200 million if the facility is located in an 'enterprise zone'. These zones are areas which are encouraging economic growth and development.

Also under the bill, a qualified data center, which means a facility that is developed, acquired, constructed, rehabilitated, renovated, repaired, or operated to house a group of networked computer servers in one physical location, would be exempt from any financial transactions tax or fee that may be imposed by the state through trades of stocks, bonds, or any other financial products. This exemption would last for a period of 30 years from the date construction of the facility is completed.

Currently, there are 11 data centers in Connecticut. These buildings house computer systems and centralize organizations’ shared IT operations, equipment, storage, management, and dissemination of data and information pertaining to a particular business. Building additional data centers throughout the state increase opportunities for economic growth. The construction of these facilities would provide high paying jobs, specifically providing a big boost in the construction industry.

Data centers eliminate costs. They utilize a system that can withstand unfavorable power conditions that generators and surge suppressors cannot. The cost of power and cooling has increased significantly in recent years. Data center managers are responsible for achieving high availability while simultaneously reducing power costs

The bill now heads to the Senate, set to meet on March 1, 2021.


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