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General Assembly Substitute Bill No. 1353
January Session, 2025
AN ACT CONCERNING SUBSIDIES FOR NEW ELECTRICITY
DEMAND.
Be it enacted by the Senate and House of Representatives in General
Assembly convened:
Section 1. Subsection (a) of section 32-286 of the general statutes is 1
repealed and the following is substituted in lieu thereof (Effective October 2
1, 2025): 3
(a) As used in this section: 4
(1) "Colocation tenant" means a person that contracts with the owner 5
or operator of a qualified data center to use or occupy all or part of a 6
qualified data center for a period of at least two years; 7
(2) "Eligible qualified data center costs" means expenditures made on 8
or after July 1, 2021, for the development, acquisition, construction, 9
rehabilitation, renovation, repair or operation of a facility to be used as 10
a qualified data center, including the cost of land, buildings, site 11
improvements, modular data centers, lease payments, site 12
characterization and assessment, engineering services, design services 13
and data center equipment acquisition and permitting related to such 14
data center equipment acquisitions. "Eligible qualified data center costs" 15
does not include expenditures made in connection with real or personal 16
property that is located outside the boundaries of the facility to be used 17 Substitute Bill No. 1353
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as a qualified data center; 18
(3) "Enterprise information technology equipment" means: 19
(A) Hardware that support computing, networking or data storage 20
functions, including servers and routers; 21
(B) Networking systems equipment that support computing, 22
networking or data storage functions and have an industry designation 23
as equipment within the enterprise class or data center class of 24
networking systems; and 25
(C) Generators and other equipment used to ensure an uninterrupted 26
power supply for the hardware and networking systems equipment 27
under subparagraph (A) or (B) of this subdivision; 28
(4) "Facility" means one or more contiguous tracts of land in the state 29
and any structure and personal property contained on such land; 30
(5) "Operator" means a person that contracts with the owner of a 31
qualified data center to operate such qualified data center; 32
(6) "Owner" means a person that holds a leasehold estate in excess of 33
fifty years or a fee title to a facility; 34
(7) "Person" means an individual, an estate, a trust, a receiver, a 35
cooperative association, a corporation, a company, a firm, a partnership, 36
a limited partnership, a limited liability company, a limited liability 37
partnership or a joint venture; 38
(8) "Qualified data center" means a facility that is developed, 39
acquired, constructed, rehabilitated, renovated, repaired or operated, to 40
house a group of networked computer servers in one physical location 41
or multiple contiguous locations to centralize the storage, management 42
and dissemination of data and information pertaining to a particular 43
business or classification or body of knowledge. "Qualified data center" 44
does not include any such facility that receives electricity from an 45
electric supplier located on the customer-side of such facility's electric 46 Substitute Bill No. 1353
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meter unless such supplier increases its generation capacity in an 47
amount that offsets all of such facility's electric usage; 48
(9) "Qualified data center equipment" means computer equipment, 49
software and hardware purchased or leased for the processing, storage, 50
retrieval or communication of data, including: 51
(A) Computer servers, routers, connections, chassis, networking 52
equipment, switches, racks, fiber optic and copper cables, trays, 53
conduits and other enabling machinery, equipment and hardware, 54
regardless of whether such personal property is affixed to or 55
incorporated into real property; 56
(B) Equipment used in the operation of computer equipment or 57
software for the benefit of a qualified data center, including component 58
parts, replacement parts and upgrades, regardless of whether the 59
personal property is affixed to or incorporated into real property; 60
(C) Equipment necessary for the transformation, generation, 61
distribution or management of electricity that is required to operate 62
computer servers and related equipment, including substations, 63
generators, uninterruptible energy equipment, supplies, conduits, fuel 64
piping and storage, cabling, duct banks, switches, switchboards, 65
batteries and testing equipment; 66
(D) Equipment necessary to cool and maintain a controlled 67
environment for the operation of computer servers and other equipment 68
of a qualified data center, including chillers, mechanical equipment, 69
refrigerant piping, fuel piping and storage, adiabatic and free cooling 70
systems, cooling towers, water softeners, air handling units, indoor 71
direct exchange units, fans, ducting and filters; 72
(E) Water conservation systems, including equipment designed to 73
collect, conserve and reuse water; 74
(F) Conduit, ducting and fiber optic and copper cables located 75
outside the qualified data center, that are directly related to connecting 76 Substitute Bill No. 1353
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one or more qualified data center locations; 77
(G) Monitoring equipment and security systems; 78
(H) Modular data centers and preassembled components of any item 79
described in this subsection, including components used in the 80
manufacturing of modular data centers; and 81
(I) Any other personal property, exclusive of motor vehicles, that is 82
essential to the operations of a qualified data center or that is acquired 83
for incorporation into or used or consumed in the operation of the 84
qualified data center; and 85
(10) "Qualified investment" means the aggregate, nonduplicative 86
eligible qualified data center costs expended by an owner, operator and 87
colocation tenant of a qualified data center. 88
This act shall take effect as follows and shall amend the following
sections:
Section 1 October 1, 2025 32-286(a)
ET Joint Favorable Subst. C/R FIN