Norm Needleman


Norm Needleman



March 1, 2021

With Eye on Connecticut’s Future, Senator Needleman Leads Approval of Legislation to 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 Norm Needleman (D-Essex) today led the approval 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 will increase Connecticut’s ability to lead the fast-growing industry, offering sales tax benefits in exchange for investments in the state.

“As we hope to bounce back from the financial turmoil of the COVID-19 pandemic in coming years, it’s important for our state to focus on the jobs and industries of the future,” said Sen. Needleman. “The growth and the strong benefits of the data center industry are exactly the type of focus that will benefit our state in the long-term. Many of the jobs to be created won’t just be jobs but careers, opportunities for our residents to settle in for long, productive careers. The industry itself is experiencing a boom period, which bodes well for potential investment in our state. This legislation looks to the future and makes sure Connecticut is well-positioned once we get there, just the latest bill I’ve supported for its forward-thinking focus. I’m happy to unveil it and I’m happy to support it.”

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.