Connecticut: NE Edge purchases a parcel of land in Connecticut

Aug 24, 2023 | Posted by Abdul-Rahman Oladimeji

The Connecticut municipality of Killingly has authorized the sale of vacant land at 125 Alexander Parkway to NE Edge LLC to construct a data center. The sale was approved for $5 million on August 8, with NE Edge intending to develop the site and two adjacent parcels.

Upon expiration of the notice period, NE Edge will be obligated to deposit an initial $100,000 into an escrow account, which will contribute to the ultimate sale price as the site undergoes due diligence. The contract stipulates that NE Edge must close on the property within two years or face a $50,000 fine each year that the property remains subject to the contract but is not sold.

Residents have until August 27 to file objections to the sale, after which NE Edge will proceed with due diligence in its entirety. Mary Calario, the town manager, has stated that she is unaware of any objections and that the initiative is "environmentally friendly and financially beneficial to the town."

If the data center is built, NE Edge estimates that it will bring between 80 and 100 long-term, well-paying jobs to the area, as well as 1,500 to 2,000 construction jobs, and will generate approximately $165 million for the city over the next thirty years. It is anticipated that hyperscale customers such as Apple, Google, Microsoft, IBM, and Meta will utilize the facility.