As States Spend Millions to Woo Data Centers, Colorado Is Having a Reckoning

A CoreSite data center expansion in a north Denver neighborhood, identified as one of the nation's most polluted zip codes, is facing significant community opposition led by organizer Alfonso Espino. Residents of Globeville and Elyria-Swansea are concerned about the health impacts of 14 diesel generators, designed for backup power, which are situated near a senior living center, affordable housing, a community park, and a health clinic. These generators, which emit carcinogenic exhaust, contribute to air pollution already disproportionately affecting the community, which experiences higher rates of respiratory illnesses. The city of Denver administratively approved the CoreSite facility due to existing industrial zoning, bypassing public hearings and raising transparency concerns among residents. In response to mounting tension, Denver Mayor Mike Johnston called for a citywide moratorium on data center construction on February 23. The Denver City Council’s Community Planning and Housing Committee has since approved a measure to establish a working group, tasked with defining new rules for data center land, energy, water use, zoning, and ratepayer protections, with the full City Council expected to vote on the one-year moratorium bill this spring. This local controversy mirrors a national debate on regulating the booming data center industry, driven by AI demands, which is projected to double globally by 2030. Reports from Food & Water Watch indicate that by 2028, U.S. data centers' electricity and water consumption could rival millions of households. In Colorado, the state Legislature is debating dueling bills: one proposing sales and use tax exemptions to attract data centers, and another, a "guardrails" bill, advocating for renewable energy mandates, public hearings, and community benefit agreements for disproportionately impacted areas. Community organizers presented CoreSite with a