Question

Will the leaders of Norwich plan for Data Centers?

This post expresses the views and opinions of the author(s) and not necessarily that of Norwich CT management or staff.

Rapid growth in data centers is expected to push major US power markets

in 2025 Connecticut has added almost zero additional data center capacity, creating a big opportunity for a city that needs to think big in order to help make things more affordable for the residents.

America's Data Center Boom

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For businesses in Norwich, including those in the Occum Business Park area, low electricity rates are available through Norwich Public Utilities (NPU), the municipal utility provider. NPU's rates are typically lower than those of the investor-owned utilities that serve other parts of Connecticut. 

Norwich Public Utilities (NPU) ratesCost comparison: NPU's electric rates are approximately 30% lower than the rates charged by investor-owned utilities in the state.Commercial rate schedule: For larger commercial and industrial accounts, NPU's electric rate structure includes both an energy charge (per kWh) and a demand charge (per kW).Energy charge (as of Nov. 1, 2025): $0.12702 per kWh.Demand charge (as of Nov. 1, 2025): $10.00 per kW for all excess demand over the initial 10 kW.New business incentives: In December 2024, Norwich officials highlighted a new discount electric rate for large businesses that relocate to Norwich. Businesses interested in the Occum Business Park specifically should inquire about any available incentives with the Norwich Community Development Corporation (NCDC). 

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Here is the Gemini AI summary

  • centers require massive amounts of water for cooling, a need that may be difficult to sustain during droughts or in regions with limited water supply.

Final assessmentNorwich brownfield sites are a mixed prospect for AI data centers. While the sites offer a pathway for potentially faster development with existing infrastructure and local incentives, these benefits are likely outweighed by the high energy costs and significant environmental risks associated with brownfield development. Connecticut's average electricity costs are considerably higher than the national average, making the state a less competitive location for a data center compared to regions with cheaper energy. The success of a Norwich brownfield data center would depend heavily on the severity of the site's contamination, the scale of economic incentives offered, and the ability to secure a long-term, low-cost power agreement with NPU. For AI-specific facilities, which consume even more power than traditional data centers, these cost and energy concerns are amplified.

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