Rangely’s geothermal proposal now includes … a data center?
Rangely residents and town council are scrutinizing a proposed geothermal project that would use modular data centers for initial funding, raising concerns about water usage, transparency, and potential conflicts of interest. The Rangely Town Council has tabled a decision on the project. This comes as Rio Blanco County recently enacted a moratorium on data center land-use applications.
A proposed geothermal project in Rangely, Colorado, that plans to use modular data centers for initial funding, is facing significant scrutiny from local residents and the Town Council. During recent meetings, resident Tanner Nielsen voiced concerns about water usage, job creation, and the overall impact of the development, advocating for a moratorium to study ecological, financial, and demographic effects. The project, which involves "micro data centers" to generate revenue for exploratory geothermal drilling, has prompted questions from council members regarding water consumption and the transparency of the study process.
Town Manager Jonah Bollinger, whose private-sector role with EAI Capital raised conflict-of-interest questions from residents, stated that the data centers would be temporarily connected to the electrical grid, with an estimated cost of $50 million per unit and $17 million in annual net operating income. While the Town's social media described the data center models as "waterless" and the geothermal system as "closed-loop," Trustee Tim Webber expressed discomfort with estimates of 20 million gallons initially needed to fill two geothermal wells, plus annual losses. The Town Council ultimately tabled a decision on the project by a 4-2 vote.
Adding to the regional context, Rio Blanco County enacted a six-month moratorium on July 21, prohibiting land-use applications for data center projects within unincorporated areas. Town Manager Bollinger had spoken in favor of the county's temporary pause but urged a shorter duration, acknowledging the economic benefits of data centers while emphasizing the need to consider water, power, and environmental impacts. Pure-Green Colorado, working with The GreyEdge Group, conducted the first phase of the Town's geothermal work, though concerns were raised about the firm's proposed involvement in Stage 2 due to potential profit stakes.
The town of Rangely is also grappling with severe water issues, including restrictions and damage to its primary drinking-water tank, further intensifying public and council concerns about any new development requiring significant water resources. The decision on the geothermal and data center project is expected to return to the council agenda.