State Sen. Norm Needleman championed the 2021 legislation designed to lure major data centers to Connecticut.

The Democratic lawmaker hoped to better compete with nearby states, bring in a growing industry, and provide paychecks for workers tasked with building the sprawling server farms.

But this legislative session, he’s wondering if those tax breaks are appropriate for all data centers, especially those with the potential to disrupt the state’s clean energy supply.

Particularly concerning to him are plans for a mega data center on the site of the state’s only nuclear power plant. The developer is proposing an arrangement that would give it priority access to electricity generated at the plant, which would mean less carbon-free power for other users.

“That affects our climate goals,” he said. “It’s additional demand of renewable energy that we would have to replace.”

Needleman, co-chair of the Senate Energy and Technology Committee, is now reconsidering details of the state incentive program as he works on legislation to study the impact of data centers on the state’s electric grid. Mistakes now, he said, could lead to “a real crisis.”

Compared with other employers that states compete for, such as automotive plants, data centers hire relatively few workers. Still, states have offered massive subsidies to lure data centers — both for their enormous up-front capital investment and the cachet of bringing in big tech names such as Apple and Facebook. But as the cost of these subsidy programs balloons and data centers proliferate coast to coast, lawmakers in several states are rethinking their posture as they consider how to cope with the growing electricity demand.

From the outside, data centers can resemble ordinary warehouses. But inside, the windowless structures can house acres of computer servers used to power everything from social media to banking. The centers suck up massive amounts of energy to keep data moving and water to keep servers from overheating.

Data centers are the backbone of the increasingly digital world, and they consume a growing share of the nation’s electricity, with no signs of slowing down. The global consultancy McKinsey & Company predicts these operations will double their U.S. electric demands from 17 gigawatts in 2022 to 35 gigawatts by 2030 — enough electricity to power more than 26 million average homes.

Some states, including Maryland and Mississippi, continue to pursue incentives to land new data centers. But in other states, the growth of the industry is raising alarms over the reliability and affordability of local electric grids, and fears that utilities will meet the demand by leaning more heavily on fossil fuel generation rather than renewables.

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