Challenging Colorado business climate keeps data centers at bay
An energy podcast discussed how Colorado's challenging energy and regulatory environment, including Denver's one-year moratorium, is discouraging data center development in the state. Policy analyst Sarah Montalbano highlighted concerns over electricity demand and water use, suggesting that Colorado's energy policies create a difficult business climate. Potential policy changes, such as allowing data centers to build their own power sources, were also explored.
An episode of the Independence Institute's PowerGab energy podcast explored the challenges facing data center development in Colorado. Hosts Jake Fogelman and Amy Cooke, along with policy analyst Sarah Montalbano, discussed how the state's energy and regulatory environment deters large-scale facilities, even though some data center companies are headquartered there.
The discussion highlighted Denver's recent one-year moratorium on new data centers. Montalbano argued that concerns about water usage are often exaggerated, and the impact of data centers on electricity rates depends heavily on energy policy. She noted that Colorado's policies, such as the retirement of dispatchable energy sources and electrification mandates, create a difficult environment for data centers, unlike states with more reliable power capacity. The podcast also considered potential policy changes, including allowing data centers to develop their own power sources or operate under consumer-regulated electricity models.