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Does the IQ 35M data logging version retain its time if the power source is disconnected?

No, the IQ 35M does not retain the date/time setting after a power loss. However, when connected to a monitoring system (such as a building management system) the date/time can be reset via Modbus RTU register or BACnet MS/TP commands. 
Please see data logging Modbus point map or BACnet device objects in the Installation Manual (IM02601005E) for further details.