Colorado’s role in artificial intelligence up for debate

Colorado lawmakers are debating Senate Bill 102, a measure designed to address the increasing demand for water and electricity by data centers, driven by the rapid growth of artificial intelligence and cloud computing. The bill would mandate data centers to optimize and report their water usage, and to utilize new renewable energy sources like wind and solar, covering all associated energy and grid expansion costs. Jean Hardy, an assistant professor at Michigan State University, highlighted the importance of data center siting, noting that these facilities can consume tens or hundreds of millions of gallons of water from local aquifers, potentially impacting agricultural communities. While opponents argue the bill could cause Colorado to lose its competitive edge in the AI sector and thousands of jobs to other states, Hardy suggests that data center-related job growth is often limited and may not significantly benefit local communities, beyond temporary construction roles. The proposed Senate Bill 102 contrasts sharply with an earlier January bill that sought to exempt data centers from sales and use taxes for two decades, a proposal criticized as fiscally irresponsible given the state's budget shortfall. Hardy also pointed out the public's challenge in understanding the necessity of data centers, observing that activists often oppose them despite relying on data-center-dependent platforms like Instagram.