Impacts of “Rampant” Data Center Growth Felt Across State, Regardless of Where Centers are Located

Around one hundred Coloradans recently rallied at the State Capitol, urging decision-makers to establish strong protections against the impacts of unchecked growth from Big Tech and AI data centers. The protestors, supported by organizations like 350 Colorado, Colorado Sierra Club, and Mountain Mamas, expressed concerns that explosive data center expansion could lead to skyrocketing electricity rates for residents, depletion of the state's limited water supplies for cooling, and increased air pollution from new gas plants and diesel backup generators. Littleton Mayor Kyle Schlachter highlighted that local governments might be unduly burdened by development that fails to address water resources, electric grid impacts, and rising energy costs. Xcel Energy, in its recent resource planning proceeding before the Colorado Public Utilities Commission, reportedly acknowledged that a business-as-usual scenario, where new resources primarily serve data centers, could lead to a 50 percent spike in household utility bills over the next five years, while Big Tech companies would not see similar increases. Advocates, including Colorado State Director of Mountain Mamas Sarah Kuntzler and Climate Policy Analyst Heidi Leathwood, called on the State Legislature to pass common-sense protections. They demand that new facilities be required to use renewable energy, that big tech companies pay for necessary infrastructure, and that communities are protected from deals often reached in secret. Groups argue that data centers should not operate in Colorado if they cannot do so without negatively impacting the state's climate progress, air, and water, or demanding tax breaks that burden struggling communities.