Colorado's regulatory environment, Denver moratorium criticized for stifling data center innovation
Colorado's reputation for innovation is being challenged by new regulations and a data center moratorium in Denver. Boom Supersonic, a Denver-based company, is developing technology to reduce data centers' reliance on the power grid and water, potentially addressing environmental concerns. However, the CEO warns that Colorado's regulatory environment could drive innovation and jobs to other states.
The Colorado Springs Gazette editorial highlights a growing concern that Colorado's regulatory environment is stifling innovation, particularly in high-tech sectors. The Colorado Chamber of Commerce reported that 98 companies have either left the state or opted against relocating there, many from high-tech industries. This trend is causing alarm among innovators who believe the state is choosing regulation over progress.
One such company, Denver-based Boom Supersonic, known for its supersonic passenger travel technology, is now adapting its jet-engine expertise to address data centers' significant electricity needs. CEO Blake Scholl revealed that the company is developing "Superpower," a 42-megawatt natural gas turbine packaged in a shipping container, designed to generate on-site electricity for AI data centers without taxing the existing grid. This system is water-free, maintains capacity in extreme heat, and limits emissions, directly tackling common concerns about data center impacts.
Despite these innovative solutions, Scholl expressed frustration over Colorado's expanding regulations, specifically criticizing Senate Bill 24-205 as "the worst AI bill in the country" and its replacement, Senate Bill 26-189, for not serving the state's innovation economy. He warned that these policies could force companies like Boom Supersonic, which is considering states like North Carolina and Texas, to leave Colorado.
Adding to the concerns, Daniel Ryley, vice president of the Metro Denver Economic Development Corp., noted that a recent 12-month data center moratorium passed by Denver City Hall, while potentially well-intentioned, "sets a troubling precedent." The editorial concludes by questioning whether Colorado's leaders are listening to innovators or continuing to enact regulations and moratoriums that undermine the state's potential.