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January 22, 2024

Lamont looks to replicate CRDA's success with statewide development agency tasked with financing transit-oriented housing

Hanna Snyder Gambini

Gov. Ned Lamont wants to replicate the success of the Capital Region Development Authority — credited with helping to spur the development of thousands of new apartments in Hartford — in other cities and towns as part of his administration's focus on transit-oriented development.

Today's Poll

Do you think CT should offer more generous incentives to promote data center development?
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Connecticut has tried to attract more data centers by creating tax incentives through the state Department of Economic and Community Development.

In 2021, the legislature enacted the Connecticut Data Center Tax Incentive Program, which can waive sales and use, and property taxes for 20 years for data centers that invest at least $200 million ($50 million if located within a state-designated enterprise zone).

The tax exemptions could be extended up to 30 years for investments that exceed $400 million.

So far, Bloomfield-based health insurer Cigna Group is the only company to apply for benefits under the program. 

Some states offer additional incentives to promote data center growth, including New York’s ReCharge NY, which subsidizes power for businesses.

Data center operators say Connecticut’s high costs of electricity, real estate and wages make the cost of running a data center less lucrative than in nearby states, even with the current incentives in place.

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