Connecticut's Energy and Technology Committee convened on February 18, 2025, to discuss critical developments in the state's energy landscape, particularly focusing on the proposed regulations for data centers. A significant point of contention arose regarding a bill perceived as an "AI killer environmental overreach," which critics argue could hinder the establishment of a $3.3 billion AI data center project in the Tri-State area.

During the hearing, stakeholders expressed concerns that the bill imposes excessive regulatory control, potentially allowing the Department of Energy and Environmental Protection (DEEP) to delay or deny projects based on vague criteria. Proponents of the data center emphasized that their facilities would operate entirely on air cooling systems, eliminating water usage and diesel generators, which have been common in similar projects. They highlighted that the data center would create approximately 1,500 construction jobs and 300 permanent positions, contributing significantly to the local economy.

The discussion also touched on the energy grid's capacity, with advocates asserting that Connecticut currently exports nearly half of its generated energy. They argued that the state has sufficient energy resources to support new data centers without compromising grid stability. In contrast, environmental advocates called for stricter regulations, emphasizing the need for data centers to report energy and water usage regularly to ensure compliance with state emission targets.

The committee's deliberations underscored the balancing act between fostering economic development through advanced technology and ensuring environmental protections. As Connecticut seeks to position itself as a leader in the AI sector, the outcome of these discussions will be pivotal in shaping the state's energy policy and its attractiveness to future investments in data infrastructure. The committee plans to continue reviewing the proposed regulations, aiming to find a middle ground that addresses both economic and environmental concerns.