Fazio Criticized Connecticut Data Center Incentives

State Senate candidate Ryan Fazio pledged to repeal the 2021 law providing tax breaks to data center developers.

Updated on Oct. 6, 2026 in Data Centers

Isometric editorial illustration of a modern industrial data center building structure set within a neutral, clean environment. — State Senator Ryan Fazio has proposed a full repeal of Connecticut's 2021 tax incentive program for large-scale data center developers. AI Illustration. Upload story photo >

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Should your local government offer tax incentives to attract data centers despite potential energy concerns?

State Senator Ryan Fazio released a campaign ad attacking Governor Ned Lamont over tax incentives for data centers. The legislation, passed in 2021, allows for tax exemptions on buildings and equipment for companies investing at least $50 million.

Why it matters

The incentives face public scrutiny due to voter concerns regarding energy usage, electricity costs, and potential community impacts. Polling shows that 60% of voters support stricter regulations on these developments across the state.

The 2021 law provides tax agreements lasting 20 or 30 years for firms with investments between $50 million and $400 million. Currently, Cigna Corp is the only entity that has qualified for these incentives.

The players

Ryan Fazio

He is a state senator currently campaigning on a platform that includes repealing existing data center tax incentives.

Ned Lamont

He serves as the Governor of Connecticut and signed the 2021 legislation that established the state's data center tax incentive program.

Cigna Corp

This global health service organization maintains a headquarters in Bloomfield and is the only company to qualify for the state tax incentive program.

Department of Economic and Community Development

This state agency is responsible for executing tax incentive agreements and managing economic development programs in Connecticut.

The details

Fazio has proposed legislation to repeal the program as part of a platform that includes $2.5 billion in annual tax reductions. While Cigna received a state sales tax exemption for a $386 million renovation in Windsor, the company opted to pay local property taxes without using the available abatement.

Ned Lamont signed the data center tax incentive law in 2021.
The state House approved the tax incentive legislation in 2021 with a vote of 133-21.
DECD officials approved a sales tax exemption for Cigna in 2022.
Ryan Fazio proposed legislation to repeal the law in 2025.
Voters were polled regarding their opinions on data centers on September 15, 2026.

The Tech Race

The debate over the 2021 Connecticut Data Center Tax Incentive Program highlights the tension between attracting high-tech infrastructure and managing the localized strain on utility resources. This rivalry positions Connecticut against other states vying to house the power-intensive hardware required for modern computing.

For residents, the debate centers on whether data center development correlates with higher local electricity costs and increased environmental usage. Fazio suggests that repealing these incentives is part of a broader plan to provide average families with roughly $2,500 in annual savings.

The takeaway

The conflict reflects a growing public skepticism toward tax breaks for industrial tech facilities when those projects compete for regional power and water resources. Residents should monitor upcoming legislative sessions for potential changes to the tax status of large-scale infrastructure projects.