Connecticut towns impose bans and moratoriums on data center projects amid rising local concerns

In Connecticut, a wave of preemptive actions against data center development is spreading, with East Lyme’s zoning commission unanimously adopting an indefinite ban before any developer has presented a plan. The move follows similar temporary moratoriums in New Haven, a two-year ban in Morris and other local restrictions, driven by worries over pollution, high electricity costs and the unknown environmental footprint of AI-heavy facilities.

State-level incentives introduced in 2021, which waive sales and use taxes for projects investing at least $200 million, have so far yielded only Cigna’s $386 million renovation in Windsor, and the Department of Economic and Community Development has reviewed just two applications. Governor Ned Lamont’s administration is considering changes to the credit, while Senate Majority Leader Bob Duff plans a statewide moratorium, and Republican Sen. Ryan Fazio calls for ending the tax break. Towns such as Cromwell, where Global Common proposes a 300-megawatt site, and Colchester, Bristol and Beacon Falls are experiencing resident protests over noise, water use and visual impact, despite developers arguing that smaller facilities pose minimal risk.