EDITORIAL: Innovation paves way for Colorado data centers

An editorial from the Denver Gazette asserts that advancing technology is making some key concerns about data centers, particularly water usage, moot in Colorado. It highlights that economist Stephen Moore views large data centers as beneficial, citing the jobs, growth, and tax revenue generated in Virginia's Loudoun County. Colorado Energy Office head Will Toor notes that data centers use only 0.1% of the state's water, and companies like Microsoft are shifting to "zero-water" cooling. Raeden, a California-based company, is collaborating with Colorado Springs on a 50-megawatt data center at a former Intel plant, utilizing an "air-cooled closed-loop system" that requires minimal water. Raeden founder Jason Green emphasized that their system uses none of the local water. Despite these innovations, Denver City Hall leaders are reportedly backing a moratorium on new data center construction, citing water as an issue. The editorial argues that the true challenge lies in Colorado's energy policy, particularly the Polis administration's goal of an all-renewable energy portfolio by 2050. U.S. Energy Secretary Chris Wright supports an "all-of-the-above" energy plan, suggesting that AI's energy demands will largely be met by natural gas and nuclear power. The editorial criticizes the state's current energy targets as "reckless and costly" and urges Colorado to diversify its energy sources to build generation and transmission capacity, ensuring competitiveness and supporting data center expansion.