Data Centers in Connecticut

Connecticut – Sturdy Infrastructure Between Major Financial Hubs

Executive Summary

Connecticut serves as a high-performance bridge for organizations that need to be near the New York and Boston financial centers without the Tier 1 price tag. It is a prime choice for enterprise colocation, offering a balance of physical security and high-speed regional access. This market is built for firms that prioritize uptime and risk mitigation while remaining within a few milliseconds of the worlds most liquid markets.

Connecticut: At A Glance

Network & Connectivity Ecosystem

Carrier Density & Carrier Neutrality: Carrier count: over 20 as of September 2025. The market features 22 distinct providers across 13 facilities, offering a resilient mix of fiber paths and neutral interconnection options for managing high-capacity traffic.

Direct Cloud On-Ramps: Over 0, enabling access to 0 cloud regions as of September 2025. While local physical on-ramps are absent, the proximity to New York City allows for low-latency private extensions to major clouds, including AWS, Google Cloud (GCP), and Microsoft Azure.

Internet Exchange Points (IXPs): Most local traffic is handled through private interconnects or by linking directly to the major peering exchanges in Manhattan and Northern New Jersey to maximize throughput.

Bare Metal: Resilient hardware options are widely available in the market through reliable providers such as Hivelocity and ColoCrossing as of September 2025.

Power Analysis

Average Cost Of Power: Industrial electricity is priced at $0.08/kWh as of September 2025. These rates provide a sustainable advantage for power-hungry deployments compared to the higher premiums found in the immediate New York City metro.

Power Grid Reliability: The local infrastructure is engineered to support heavy industrial and corporate demand. Multi-substation support and redundant transmission lines ensure steady delivery for mission-critical operations across the state.

Market Access, Business & Tax Climate

Proximity To Key Business Districts: Data centers are centrally located near the Stamford and Hartford financial corridors. This proximity is vital for the insurance and high-stakes trading sectors that require reliable, local data processing.

Regional Market Reach: This location serves the high-density Northeast Megalopolis, reaching a massive population base from Washington D.C. to Boston within a narrow latency window.

Tax Advantage For Data Centers: Colocation tenants in Connecticut benefit from specific sales and use tax exemptions on IT hardware and infrastructure. Local municipal policies further support operators through property tax abatements for facility development, lowering the total cost of ownership.

Natural Disaster Risk

Connecticut carries a Moderate risk profile with a score of 69.51 as of September 2025. The environment is generally stable, though it requires standard site hardening for regional weather patterns.

The primary natural hazards include:

• Hurricanes
• Ice Storms
• Lightning and Thunderstorms
• Riverine Flooding
• Tornadoes
• Wildfire

While the state faces occasional high-wind events, the inland position of the major data center clusters mitigates the most severe coastal impacts. Risk levels for significant long-term disruptions remain manageable through standard resilient design.