Data Centers in Connecticut

Connecticut – Strategic Northeast Colocation Hub

Connecticut offers a compelling data center market for enterprises seeking a strategic position between the major hubs of New York City and Boston. The state provides a cost-effective alternative with lower operational risks while maintaining low-latency connectivity to the nation's primary financial and technology centers. This balance makes it an ideal location for disaster recovery, secondary production sites, and latency-sensitive applications serving the Northeast corridor.

Connecticut: At A Glance

Network & Connectivity Ecosystem

Connecticut's connectivity ecosystem benefits immensely from its location, acting as a key artery for data traffic flowing between New York and Boston. While not a primary interconnection hub itself, it offers robust and diverse network paths to these critical markets.

Carrier Density & Carrier Neutrality With over 20 network providers active in the state as of September 2025, businesses have solid options for creating redundant, carrier-neutral connectivity. The market features a mix of national and regional carriers, ensuring competitive pricing and diverse routing.

Direct Cloud On-Ramps Connecticut has no direct public cloud on-ramps within its borders. Secure, high-performance access to all major cloud providers is achieved through private network connections to the primary North American cloud regions located in nearby New York, New Jersey, and Northern Virginia.

Internet Exchange Points (IXPs) Public peering is limited within the state. Most network interconnection is handled through private peering arrangements within carrier-neutral data centers or by connecting to the rich ecosystem of IXPs in New York City.

Bare Metal Bare metal server options are available in Connecticut, providing dedicated compute resources for performance-critical workloads. Providers like Hivelocity and phoenixNAP offer solutions in the region, enabling businesses to deploy infrastructure without capital expenditure.

Power Analysis

Connecticut provides a stable and reasonably priced power environment, a significant advantage in the power-constrained Northeast.

Average Cost Of Power Industrial electricity costs average around $0.08/kWh (USD) as of September 2025. This rate is often more favorable than those in adjacent metropolitan markets, contributing to a lower total cost of ownership for data center operations.

Power Grid Reliability The state's power grid is well-engineered, particularly in the corridors where data centers are concentrated. Facilities typically offer multi-substation support and redundant power feeds to ensure high levels of uptime for mission-critical operations.

Market Access, Business & Tax Climate

Connecticut's business and tax environment is increasingly focused on attracting technology infrastructure investment, offering a welcoming climate for data center operators and tenants.

Proximity To Key Business Districts Data centers in Connecticut provide low-latency access to Hartford’s insurance and financial services industries. Their strategic location also places them within milliseconds of both the New York City and Boston metropolitan financial, media, and technology sectors.

Regional Market Reach An infrastructure deployment in Connecticut can effectively serve a population of over 25 million people across the Northeast with excellent performance. This makes it a strong choice for content delivery, application hosting, and business continuity.

Tax Advantage For Data Centers Connecticut offers significant tax incentives, including sales and use tax exemptions for data center equipment for both operators and colocation tenants. These programs directly reduce the capital and operational costs associated with deploying and maintaining IT infrastructure.

Natural Disaster Risk

Connecticut has a moderate natural disaster risk profile, with a FEMA National Risk Index score of 69.52 out of 100 as of September 2025. This profile avoids the primary earthquake and wildfire risks of other US regions.

The main environmental risks to consider are seasonal and atmospheric. Key hazards include winter weather, hurricanes, ice storms, and riverine flooding. Facilities in the state are engineered with these specific regional threats in mind, incorporating mitigation strategies for storm resilience and water ingress.