Colorado data center bills split environmental, labor groups
News ClipThe Colorado Sun·CO·3/26/2026
A proposed bill in Colorado, backed by environmental groups, seeks to regulate data centers by requiring developers to invest in clean energy and grid upgrades to offset their energy consumption and protect ratepayers. However, the legislation faces strong opposition from labor unions, who argue it would deter data center development and lead to job losses in the state.
electricityenvironmentalgovernment
Gov: Colorado General Assembly
A legislative proposal in Colorado has ignited a significant debate between the state's leading environmental organizations and labor unions regarding the regulation of energy-intensive data centers. The bill, supported by environmental groups, aims to safeguard ratepayers from increased utility costs and help Colorado achieve its climate objectives. It proposes requiring data center developers to implement a "bring your own new clean energy" (BYONCE) strategy, mandating investments in climate-friendly energy sources and grid enhancements to counteract the environmental impact of their projects.
During its initial committee hearing, the proposal encountered substantial opposition from labor representatives. Union officials argued that the bill's stringent requirements would act as a deterrent, potentially driving high-paying jobs and data center development away from Colorado to neighboring states such as Wyoming. Nate Bernstein, executive director of Climate Jobs Colorado, specifically stated that the "punitive measures this bill creates will effectively act as a prohibition on data center development."