Trumbull data center plans to invest $200 million in the property over the next five years

TRUMBULL – The operator of a Trumbull data center said he will make a $200 million investment that will upgrade the property, boost its value and bring more jobs to town.

Roelof Opperman, the CEO and founder of cogNOVUM, the operator of the data center at 80 Merritt Blvd, said the investment is the first step of a state-offered tax incentive program the company is pursuing and will bring many long-term benefits to Trumbull.

“We’re really excited to contribute to the town,” Opperman said. “I really appreciate the town’s help and working with us.”

Economic and Community Development Director Rina Bakalar said the town is in favor of the plan, and signed a host municipality fee agreement with the data center after the plan was approved by the Town Council on Oct. 6.

She said the $10 million sale of the property from Digital Realty to AC Trumbull LLC in December 2024 didn’t reflect the property’s overall value to the town, given that Digital Realty originally purchased the property for almost $91 million in 2010, according to land records.

“The reason this is good for the town, is that when you make that level of capital investment in a property, it helps that property not only hold its value, but grow its value over time,” she said. “And any time a value grows, that’s good for our taxable grand list.”

Bakalar said the investment will be over a five-year period, ending in 2030. Then, she said the company will apply to the state’s Data Center Tax Incentive Program, which is under the state Department of Economic and Community Development.

According to the DECD website, the program provides tax and property tax exemptions to certain goods, services and real property of the data center after making a “significant upfront capital investment.”

Bakalar said the agreement doesn’t have a cost or negative impact on the town, but merely permits the business to make the investment and pursue the program.

“They don’t get any tax benefits from the town. That’s not what this is for,” Bakalar said.

Opperman said part of the reason his eyes were set on the Trumbull location was because of its history as the first Nasdaq Stock Market location and its proximity to New York City.

He said the plan is to retrofit the space with new technology designed to operate artificial intelligence computation systems, then leasing it to an AI company or corporate division.

“I think we were interested because we saw a data center that had a lot of potential, and also, had a decent amount of power that was not being used,” Opperman said.

Bakalar said this investment can push technological advancement not only in Trumbull, but Connecticut.

“I think it’s an asset to the Trumbull area because, as I’m understanding it, with the proliferation of AI, the need for data is difficult in Connecticut because our energy costs are high and so forth. We’re not as competitive as other states,” she said. “What I’m learning from people in the industry is many of their major tenants want data centers within 60 miles of their location. So, I think that it’s an asset for Trumbull.”

Opperman said there will also be construction work done to two of the three buildings on the property. He said one building will be left alone because it is still relatively new after receiving an upgrade in 2013. 

He said given the substantial investment being made, he hopes the business stays in town for many years to come.

“We’re really excited about building the infrastructure of the future in Trumbull,” he said.

This article originally published at Trumbull data center plans to invest $200 million in the property over the next five years.