Saud Anwar

State Senator

Saud Anwar

Deputy President Pro Tempore

Working For You

March 1, 2021

With Eye on Connecticut’s Future, Senator Anwar Supports Legislation in Senate Supporting Data Center Development

Focused on the continuing importance of Connecticut’s economy and creating jobs that will bolster the state for decades, State Senator Saud Anwar (D-South Windsor) today voted in support of legislation in the Senate that would provide financial incentives for qualified data centers in the state. Once it is sworn into law by the Governor’s office after today’s approval in the Senate and last week’s approval in the House, this legislation would increase Connecticut’s ability to lead the fast-growing industry, offering sales tax benefits in exchange for investments in the state’s community. Sen. Anwar also noted the potential environmental issues of the legislation raise concerns to him, which he’s happy are being addressed.

“I welcome this effort, as it is expected to increase revenue, business opportunities and investment in our state,” said Sen. Anwar. “However, I’m concerned about the environmental implications these large, energy-using facilities could have. I’m encouraged that legislative leadership and the Governor’s office for their renewed commitment to environmental issues, including supporting the legislation’s strengthened emissions standards and requiring new buildings to conform to green certification. To me, environmental justice will be just as critical as bolstering our community; we can have economic growth without compromising our values.”

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, waiving sales taxes for up to 30 years on data centers with investment of at least $400 million in a facility in qualified opportunity zones in Connecticut, or at least $200 million if the facility is located in an ‘enterprise zone’. These zones encourage 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 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, while the industry itself is expected to continue seeing growth in coming years, expected to be valued at close to $70 billion by 2024.