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Data Centers in Connecticut

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Explore Markets in Connecticut

Connecticut – Strategic NYC & Boston Alternative

Executive Summary

Connecticut is a compelling data center market for businesses that require low-latency access to the Boston and New York City financial corridors without the premium costs of those primary hubs. With attractive tax incentives and solid connectivity, the state provides a strategic location for production and disaster recovery workloads, ensuring high performance and operational savings.

Connecticut: At A Glance

FactorRating / DataNotes
Global Connectivity GradeBStrong connectivity with access to major Northeast fiber routes.
Direct Cloud On-Ramps0 – as of September 2025The nearest hub is New York City; private network extensions are available.
Power Cost$0.08/kWh, as of September 2025Below the average for the Northeast region, reducing operational overhead.
Disaster RiskModerate (69.52), as of September 2025Risks are manageable and primarily weather-related.
Tax IncentivesYesDC-specific exemptions for tenants and local business tax abatements are available.
Sales Tax6.35% State Sales Tax, as of Midyear 2025Data center-specific exemptions can offset this cost for qualifying projects.

Network & Connectivity Ecosystem

Carrier Density & Carrier Neutrality With over 22 network providers active in the state as of September 2025, Connecticut offers a competitive connectivity landscape. Customers in carrier-neutral facilities can establish redundant connections to major Northeast fiber routes, ensuring reliable network performance.

Direct Cloud On-Ramps There are no direct public cloud on-ramps within Connecticut as of September 2025. Businesses connect to cloud providers by extending their networks to primary hubs like New York City, where all major cloud platforms maintain a presence.

Internet Exchange Points (IXPs) Public peering is not a major feature of the Connecticut market. Most network interconnection is handled through private peering arrangements or via the dense ecosystem of IXPs in nearby New York City.

Bare Metal Bare metal server solutions are readily available from providers operating within the state, offering dedicated compute for performance-sensitive applications. Options include services from providers like Hivelocity.

Power Analysis

Average Cost Of Power Industrial power costs in Connecticut average $0.08/kWh as of September 2025. This competitive rate offers a clear financial advantage, lowering total operational costs compared to the more expensive power markets in adjacent metropolitan areas.

Power Grid Reliability The electrical grid supporting Connecticut's primary data center corridors is well-engineered and stable. Facilities in the region are typically supported by redundant power feeds and substation diversity to meet uptime requirements for critical business operations.

Market Access, Business & Tax Climate

Proximity To Key Business Districts Connecticut data centers offer low-latency connectivity to the state's major financial, insurance, and healthcare industries in Hartford and Stamford. This proximity is critical for applications that demand rapid data processing and transaction speeds.

Regional Market Reach The state is strategically positioned between Boston and New York City, making it an ideal hub for serving the entire Northeast corridor. Colocation in Connecticut provides effective reach to one of the largest economic regions in the world.

Tax Advantage For Data Centers Connecticut provides significant tax incentives, including sales and use tax exemptions on qualifying data center equipment, software, and electricity. These benefits directly reduce the capital investment and ongoing operational expenses for tenants.

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 risk landscape is predictable and allows for effective mitigation planning.

The primary environmental threats are weather-related and include winter weather, hurricanes, ice storms, tornadoes, and riverine flooding. Seismic and wildfire risks are relatively low for the region.

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