Colorado’s stand on data centers

Colorado legislators are currently debating two key data center bills as the legislative session nears its conclusion on May 13. House Bill 1030, championed by Denver Rep. Alex Valdez, proposes tax incentives to attract data center companies to the state but has stalled in committee. Conversely, Senate Bill 102, authored by Fort Collins Sen. Cathy Kipp and backed by environmentalists, seeks increased state regulation over data center energy and water usage, and also failed to receive a vote in committee. Both sponsors, Democrats, remain optimistic about reaching a compromise. Concurrently, Colorado's Public Utilities Commission has begun considering its own regulatory measures for the industry, incorporating protections similar to those in the environmentalist-backed bill. This legislative and regulatory activity unfolds against a backdrop of growing public opposition to data centers across the state, prompting officials to reconsider existing agreements with developers. Governor Jared Polis has voiced strong support for a permanent sales and use tax exemption for data centers, characterizing AI data centers as "the manufacturing of our era" and believing such an update to the tax code would boost economic development.