Colorado killed its only data center water bills. Cities are filling the gap themselves.
Colorado's state legislature failed to pass data center water disclosure and efficiency bills, prompting multiple cities and counties to enact their own regulations. Denver and Jefferson County passed one-year moratoriums on new data center construction due to water concerns, while Longmont is considering a ban on large facilities. Residents in Colorado Springs are actively opposing a proposed Raeden data center.
Colorado's state legislature failed to pass key bills aimed at regulating data center water usage and promoting efficiency, including Senate Bill 26-102 for water disclosure and House Bill 26-1030 for tax incentives tied to water efficiency. Despite extensive lobbying efforts from various industry players like Vantage Data Centers, TRACT, and Crusoe Energy Systems, both bills died in committee in May. Senator Kipp, a proponent of the disclosure bill, expressed concerns about unrestrained data center development's impact on water, air quality, and electricity.
In response to the legislative inaction and ongoing drought conditions, several Colorado localities are implementing their own measures. Denver City Council unanimously passed a one-year moratorium on new data center construction, effective May 21, citing water consumption, noise, air quality, and placement as concerns to be addressed by a working group. This follows Aurora's existing data center water restrictions enacted in 2023. Jefferson County also voted for a temporary ban on new data center applications and zoning through March 2027 to assess environmental and economic impacts.
Longmont City leaders are expected to vote on a ban for data centers using 100 megawatts or more of electricity. Meanwhile, in Colorado Springs, residents are engaged in active opposition against a proposed 50-megawatt data center by Raeden, with over 500 residents attending a recent community meeting. Developer Jason Green of Raeden has indicated the opposition will not deter the project. The Colorado Public Utilities Commission remains the only state body with authority over data center energy costs but lacks jurisdiction over water use. Denver Water, which monitored the state bills, confirmed its reservoirs are at 79% capacity, below average, and is taking measures to conserve water amid severe drought conditions, indicating the critical nature of water resources in the state.