Colorado is debating whether to incentivize data centers. Western Slope leaders ask: What about water?
News ClipSummitDaily.com·CO·2/27/2026
Colorado lawmakers are debating whether to offer tax incentives to attract more data centers to the state, but some Western Slope leaders are raising concerns about the impact on water resources. One bill would provide tax breaks to data centers, while another would impose stricter regulations around renewable energy use and water consumption. The debate centers on balancing economic development with environmental protection, as data centers are power-hungry facilities that can consume large amounts of water.
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Colorado lawmakers are debating how to attract more data centers to the state while addressing concerns over water use and energy costs. One bill would offer tax incentives to data centers, while another would impose stricter regulations on their energy and water consumption. Western Slope leaders warn that data centers could divert water away from their communities, which are already facing severe drought. Lawmakers from both sides of the aisle are seeking a balanced approach, but the inclusion of tax incentives remains a sticking point. Some lawmakers are calling for more research on the potential impacts of data centers before moving forward with legislation.