Connecticut Senate Majority Leader Bob Duff plans to introduce a statewide moratorium on AI data centers when the legislature reconvenes next year.

Duff, a Norwalk Democrat, announced the proposal Oct. 22 at a press conference in Groton, where he stood alongside state Senate candidate Joe de la Cruz, a former state representative. The issue has become a flashpoint in the governor's race between Greenwich State Sen. Ryan Fazio, the Republican challenger, and Democratic Gov. Ned Lamont.

Duff said the state needs to better understand the costs data centers impose on electricity, water and infrastructure before allowing them to move forward, WTNH reported.

His proposal carries weight. With State Sen. Martin Looney of New Haven retiring, Duff is expected to become Senate president in January, giving him broad authority over which bills reach the floor. Democrats hold 25 of the Senate's 36 seats, WTNH reported.

Greenwich connection

Fazio, 36, gave up his Greenwich-based Senate seat to run for governor. He has made data centers a central campaign issue, running TV ads attacking Lamont for signing a 2021 law that authorized up to 30 years of sales and property tax exemptions for qualifying data center projects.

"Gov. Lamont gave data centers a tax break," Fazio said at an Oct. 22 debate, according to CT Insider. "I've been trying to take it away."

Fazio proposed legislation in 2025 to repeal the 2021 incentive program, CT Insider reported. He has not made a public statement specifically addressing Duff's moratorium proposal.

Lamont, asked at the same debate whether he regretted signing the 2021 law, said he has blocked large AI data centers from entering the state. A spokesperson for Lamont told The Connecticut Mirror the governor was open to changing or eliminating the tax credit. The spokesperson added that the incentive "should be clarified to ensure it is never used by a hyperscale data center."

Bipartisan momentum

The push for a moratorium crosses party lines. Senate Minority Leader Stephen Harding, a Brookfield Republican, told the Connecticut Mirror he supports a pause on data center development and would back repealing the 2021 tax incentive.

A Sacred Heart University/WFSB/CT Insider poll from Sept. 15 found six in 10 registered voters favor greater restrictions on data center development, CT Insider reported. Only 25% favored encouraging development for its economic potential.

Connecticut does not currently have any large-scale AI data centers, according to CT Public. Bloomfield-based Cigna Corp. is the only company that has used the 2021 tax incentive, receiving a sales tax exemption in 2022 for a $386 million renovation of an existing data center in Windsor, CT Insider reported.

Towns already acting

About half a dozen municipalities have moved on their own. East Lyme's Zoning Commission voted to impose an indefinite ban on all data center development, effective Oct. 24, before anyone had proposed building one there, the Connecticut Mirror reported. New Haven passed a one-year moratorium in September. Groton, West Haven, Trumbull and Morris have also enacted bans, according to NBC Connecticut.

Duff's moratorium bill would need to pass both chambers and be signed by the governor. The legislature's next session begins in January.