Ryan Fazio Demands End to Connecticut Data Center Tax Breaks

Republican gubernatorial candidate Ryan Fazio is calling for an end to state tax breaks for large-scale data centers in Connecticut, arguing that these incentives benefit large corporations at the expense of taxpayers. Fazio specifically highlighted a Cigna-owned data center in Windsor that received approximately $17 million in sales tax rebates under a 2021 law. He proposed implementing industry guardrails and requiring facilities to provide their own power to prevent utility rates from rising for residents.

Governor Ned Lamont denied that these incentives encourage the development of large AI data centers, stating he has rejected every such proposal during his 7.5-year tenure. Democratic State Senator James Maroney defended the 2021 legislation, explaining that the law was designed for biotech and insurance companies before the emergence of hyperscale AI centers.

The local debate coincides with national commentary from Donald Trump, who argued on social media that communities opposing data centers risk becoming backwards and poor. While Fazio focuses on state-level tax reform, residents in East Lyme have also spoken out against proposals to build AI data centers in their town.