Data Centers in Connecticut

Connecticut – Strategic Hub for Northeast Redundancy

Connecticut offers a compelling data center market for enterprises seeking robust infrastructure outside the primary New York and Boston corridors. Its strategic location provides low-latency connectivity to major financial and population centers, making it an ideal site for disaster recovery and secondary workload deployments that demand high reliability without the premium costs of adjacent Tier 1 markets.

Connecticut: At A Glance

Network & Connectivity Ecosystem

Carrier Density & Carrier Neutrality: Connecticut hosts a healthy ecosystem of over 20 unique network providers as of September 2025. Carrier-neutral facilities are available, offering diverse connectivity options and ensuring competitive pricing for transit and transport.

Direct Cloud On-Ramps: There are no public cloud on-ramps located directly within Connecticut as of September 2025. Businesses connect to cloud providers via dedicated private network links (PNI/wave) to major interconnection hubs in the New York and New Jersey metro area.

Internet Exchange Points (IXPs): Public peering is limited within the state. Most network interconnection occurs through private peering arrangements inside local data centers or by connecting to the major IXPs in New York City.

Bare Metal: Bare metal server options are available from providers operating within the state, offering dedicated compute for performance-sensitive applications. This includes services from global providers like Hivelocity and ColoCrossing.

Power Analysis

Average Cost Of Power: Industrial power rates in Connecticut average around $0.08/kWh (USD) as of September 2025. This pricing is often more favorable than in adjacent markets like New York, providing a significant operational cost advantage for high-density deployments.

Power Grid Reliability: The state’s power grid is well-engineered, particularly in the corridors where data centers are located. Facilities typically feature redundant power feeds from multiple utility substations, supporting high uptime requirements.

Market Access, Business & Tax Climate

Proximity To Key Business Districts: Data centers in Connecticut are strategically positioned to serve the financial services industry in Fairfield County, the insurance sector in Hartford, and the advanced manufacturing and biotech hubs throughout the state. This proximity ensures low-latency performance for critical applications.

Regional Market Reach: The state serves as an excellent midpoint for reaching both the New York City and Boston metropolitan areas. It effectively covers the entire Northeast United States, a population of tens of millions, with minimal network delay.

Tax Advantage For Data Centers: Connecticut provides compelling tax incentives, including specific exemptions for equipment used in data centers. These programs reduce the total cost of ownership for colocation tenants and facility operators, making the state financially attractive for new deployments.

Natural Disaster Risk

Connecticut has a moderate natural disaster risk profile, with a FEMA National Risk Index score of 69.52 as of September 2025. The state's primary environmental threats are atmospheric and do not include significant seismic or volcanic activity. Key risks for consideration include winter storms, hurricanes, severe lightning, riverine flooding, and strong winds.