The proposed legislation, Substitute Bill No. 1353, aims to amend section 32-286 of the general statutes concerning subsidies for new electricity demand, with an effective date of October 1, 2025. The bill introduces new definitions and clarifications related to "qualified data centers," which are facilities designed to house networked computer servers for data management. Key definitions include "colocation tenant," "eligible qualified data center costs," and "qualified investment," which outlines the types of expenditures that qualify for subsidies. Notably, the bill specifies that a "qualified data center" does not include facilities that receive electricity from an electric supplier located on the customer-side of the facility's electric meter unless the supplier increases its generation capacity to offset the facility's electric usage.

Additionally, the bill expands the definition of "qualified data center equipment" to encompass a wide range of hardware and systems necessary for the operation of data centers, including cooling systems, water conservation systems, and security systems. The legislation aims to promote investment in data centers by providing clarity on what constitutes eligible costs and investments, thereby encouraging the development of infrastructure that supports increased electricity demand in the state.

Statutes affected:
Raised Bill: 16-11, 16-244dd