Issue link: https://nebusinessmedia.uberflip.com/i/1543333
HARTFORDBUSINESS.COM | FEBRUARY 23, 2026 11 not be settled. On Feb. 10, the legisla- ture's Energy & Technology Committee introduced a concept bill proposing to repeal certain data center tax incen- tives, though detailed language has not yet been released. Experts say Connecticut's limited data center activity stems largely from the state's dense population and high energy costs. Still, some large projects have been proposed. New York-based Atlas Capital Group last year outlined plans for a roughly 1-million-square-foot data center on Griffin Road North in Bloomfield but has not yet filed a formal application. An even larger proposal tied to Dominion Energy's Millstone nuclear power station in Waterford stalled after the Connecticut Siting Council denied a required boundary amendment in January 2024, effectively halting NE Edge's plan to build about 1.5 million square feet of data center space powered from the plant. A separate New Britain proposal pairing a data center with a fuel cell has advanced on the generation side, but the data center itself has not yet begun construction. Other states Connecticut is not alone in responding to concerns over the growing energy demands of data centers. Texas enacted legislation in 2025 allowing grid operators to require large energy users, including data centers, to curtail operations during periods of peak demand. Mid-Atlantic states are debating policies that would push very large data centers to secure dedicated power supplies or accept the possibility of interruptible electric service during periods of grid stress. Virginia — home to the world's largest concentration of data centers — has created special utility rates for those customers. Hoffman, the Pullman & Comley attorney, said Lamont's position reflects lessons learned from states that aggressively recruited large data centers without fully anticipating grid impacts. He noted that certain provisions of Connecticut law can complicate efforts by private developers to pair data centers with independent power sources. Those restrictions could become a policy consideration as Connecticut weighs how to accommo- date self-powered projects. Hoffman pointed to New Hamp- shire as one possible model. That state recently created a category for "off-grid electricity providers" that can avoid full utility regulation if they do not rely on existing transmission or distribution infrastructure. Connecticut officials have not said whether they are considering a similar framework, but Hoffman said the governor's approach reflects an effort to balance competing interests. "I think Connecticut doesn't want to have a moratorium on data centers," Hoffman said. "But by the same token, I think that the governor is essentially saying, let's be smart about this, let's be intentional about this and let's make sure that we do this intelligently." A rendering shows ReNew Developers' proposed 4-megawatt data center in Bristol, which would include on-site fuel cell generation. Contributed Image