Colorado Data Centers Bill Dies in State Legislature

The Colorado legislature concluded its 2026 session with a significant development for data center regulation. Senate Bill 102, which sought to impose regulations and offer incentives for data center development, was voluntarily withdrawn by its sponsor, Sen. Cathy Kipp (Fort Collins Democrat), due to a proposed last-minute rewrite and insufficient time for passage. The bill aimed to require new data centers to implement community and wildlife protections, meet water efficiency standards, and limit backup generator usage. Kipp expressed disappointment, noting that she had worked to align various stakeholders including data center companies, Xcel Energy, environmental groups, and labor unions. She vowed to continue working on the issue next year and urged data center companies to acknowledge the potential harms their operations pose to communities and the power grid. This marks the second data center-related bill to die in the session, following House Bill 1030, which would have provided millions in incentives for regulatory compliance.