On March 25, 2025, the Connecticut State Legislature introduced Senate Bill 1353, aimed at providing subsidies for new electricity demand, particularly in relation to qualified data centers. This legislative proposal seeks to stimulate economic growth by incentivizing the development and operation of data centers within the state, which are increasingly vital in the digital economy.

The bill proposes significant amendments to existing statutes, specifically repealing and replacing subsection (a) of section 32-286. It defines key terms such as "colocation tenant," referring to individuals or entities that lease space in data centers for a minimum of two years, and outlines what constitutes "eligible qualified data center costs." These costs include a wide range of expenditures related to the establishment and operation of data centers, such as land acquisition, construction, and equipment procurement, while explicitly excluding costs associated with properties outside the data center's boundaries.

Debate surrounding Senate Bill 1353 has highlighted concerns regarding the environmental impact of increased electricity demand and the long-term sustainability of such subsidies. Critics argue that while the bill may boost economic activity, it could also lead to higher energy consumption and strain on the state's power grid. Proponents, however, emphasize the potential for job creation and the importance of data centers in supporting modern technological infrastructure.

The economic implications of this bill are noteworthy. By incentivizing data center development, Connecticut aims to position itself as a competitive player in the tech industry, potentially attracting significant investment and creating numerous jobs. However, the balance between economic growth and environmental responsibility remains a contentious point of discussion among lawmakers and stakeholders.

As the bill progresses through the legislative process, its future will depend on ongoing debates and potential amendments addressing environmental concerns. If passed, Senate Bill 1353 could mark a pivotal step in Connecticut's strategy to enhance its technological landscape while navigating the complexities of energy consumption and sustainability.