Office of Data Infrastructure Administration and Security

About

Office of Data Infrastructure Administration and Security - About

Cloud computing, digital storage and cybersecurity demand is growing in academics, research, financial services and many other industries. With immense growth in the data center market, Connecticut is positioning itself on the leading edge of the digital and knowledge economies by assisting these projects.

Program Details

The state knows data center projects require significant upfront capital investment. The Data Center Tax Incentive Program provides sales and use tax exemptions on certain goods and services purchased or used by the data center and property tax exemptions on certain real property and equipment used by the data center. It also provides an exemption for financial transactions taxes the state may impose in the future.

Eligibility

The Data Center Tax Incentive is available to owners and developers of data centers that show the facility to be developed, acquired, constructed, rehabilitated, renovated, repaired or operated, that will be used as a data center, and that the required investment will be made by the fifth year of their agreement with DECD.

  • Qualified Investments – Data centers that make an investment of at least $50 million if the data center is located in an enterprise zone or a federal opportunity zone or $200 million if it is located elsewhere;
  • Agreement Provisions – Data centers must enter into tax incentive agreements with DECD, generally 20-year terms from the effective date;
  • Extensions – Agreements may be extended to 30 years if the investment is at least $200 million and the data center is located in an enterprise zone or an opportunity zone or $400 million if it is located elsewhere; and
  • Host Fee Agreements – Owners and developers of qualified data centers must enter into fee agreements with the municipalities in which the data center is located before beginning the capital project.

For more information on this incentive, please review the legislation.

Contacts

For more information about the program, requirements, eligibility, and how to apply, please contact Laura Jaworski, at (860) 500-2368 or at Laura.Jaworski@ct.gov, or Susan Decina, at (860) 500-2463 or at Susan.Decina@ct.gov.