This story has been updated to correct that the only tax waivers AC Trumbull LLC receives on the AI data center project are for state taxes.
TRUMBULL – A plan by the new owner of the former Nasdaq data center in the Trumbull Corporate Park to spend $200 million to renovate and reopen the site as an AI data center didn’t draw much attention last fall when the town’s Rules and Research Committee approved a resolution.
That resolution stated that First Selectman Vicki Tesoro was authorized to enter into a Host Municipality Fee Agreement between the town of Trumbull and 80 Merritt Blvd. property owner AC Trumbull LLC and CogNOVUM. That agreement allows the state of Connecticut to give the owner and redeveloper certain tax breaks if the town indicates they were in favor of the data center plan.
AC Trumbull LLC is an investment vehicle formed by Aphorio Carter Critical Infrastructure Fund (the real estate division of Carter Funds) and CogNOVUM. The entity is spearheading a $200 million upgrade and development project at the existing 227,500-square-foot facility that once housed Nasdaq’s computer and disaster recovery center.
AC Trumbull purchased the property in 2024 from Digital 60 and 80 Merritt LLC Digital Realty TR LP for $10 million. It was owned by Nasdaq until 1996, when it was sold to Sentinel Properties Trumbull LLC for $31.75 million, according to town property records. The Digital 60-led group bought the property for $90.95 million in 2010.
Fast forward to the June 2 town Economic and Community Development Commission where ECD Director Rina Bakalar updated the town body about press coverage regarding a potential AI data center at the Merritt Boulevard site.
“Trumbull has one existing data center at 80 Merritt Blvd.,” Bakalar told the commission. “There are no new data centers coming to Trumbull and the upgrades being made to the existing center are largely technological in nature with minor physical changes proposed.
“Existing utility infrastructure is adequate to support these upgrades. Though there may be other technology centers in Trumbull, this location is the only true data center (in terms of what is being discussed in the press) and has existed for some time.”
At least 1,200 residents didn’t buy Bakalar’s explanation regarding the data center and have asked the first selectman to hold a joint special meeting between the Town Council and Planning and Zoning Commission to learn more about the ramifications of an AI data center. They have started an online petition on change.org asking for that meeting to be scheduled.
Those residents want a one-year moratorium on the construction of AI data centers in Trumbull until that meeting is held and the town determines possible environmental impact and the need for high amounts of electricity and water. (As part of a nationwide protest against AI data centers, the group behind the Trumbull petition were planning a protest at either Town Hall or 80 Merritt Blvd. on Saturday, July 18.)
Sarah Beck, the resident who started the petition, delivered it to the Town Council at its June 26 meeting. She showed up at a subsequent July 13 Council meeting.
“I want to thank First Selectman Tesoro for addressing our concerns for a proposed data center and her commitment to hold a public meeting about the topic,” Beck said. “On behalf of the 1,100 people who signed a petition, I am also requesting a joint meeting with Town Council and P&Z Commission with environmental experts to speak on the risks and benefits of AI data centers, including electric.
Those protesting such data centers are concerned about the massive amounts of electricity needed to power them. Those residents are worried they will be left paying higher utility bills to subsidize grid upgrades.
She was then interrupted by the Town Council when she was told she had to speak to agenda items only. She was able to finish her thought and delivered the updated petition and her talking points to the Council.
On July 10 Tesoro issued a statement regarding the proposed AI data center:
“I want to thank the residents who have reached out with questions and concerns regarding the data center property at 80 Merritt Boulevard. This property has operated as a data center in Trumbull since the 1960s, and I understand the significant public interest surrounding any potential changes to its operations or future use.
“I want the community to know that this matter is being taken seriously. I am actively meeting with the property owners, gathering information, and closely monitoring developments. My administration is committed to ensuring that residents are kept informed, that community concerns are heard, and that any potential impacts on Trumbull are carefully evaluated.”
She went to say that to provide the public with clear and accurate information, her administration is preparing a comprehensive document that will address many of the questions that have been raised. It will include information about the property’s current operations, any proposed upgrades, the applicable review process, and what those changes could mean for the community. In addition, she said she intends to invite the data center’s new ownership team to present information about the project directly to residents.
In the end, Tesoro said it would be premature to hold a public meeting before her administration has gathered the necessary information and can provide clear, accurate answers with input from the appropriate experts.
How the host agreement works
The fee agreement worked out between the town and AC Trumbull utilizes the Connecticut Data Center Tax Incentive Act. Under this state framework, if an operator commits to a massive capital investment, they receive a multi-decade waiver on state sales and use taxes.
The negotiated host municipality fee agreement calls for AC Trumbull and CogNOVUM (the redeveloper) to pay a negotiated “host fee” to the town in exchange for tax waivers. State law dictates these tax exemptions span 20 years for a $200 million investment and can extend to 30 years if investments exceed $400 million.
CogNOVUM will get 20 years in tax exemptions as it invests $200 million in the project, which includes replacing the former Digital Realty property with a modernized artificial intelligence and cloud computing data center.
