Meanwhile, proponents of the latter proposal have maintained they don’t intend to ban, via regulation, the building of new data centers. Instead, they said, they want to ensure that data centers, which require a lot of energy to operate, don’t detract Colorado from achieving its carbon goals.
Sandra Hagen Solin, director of the Data Grid Consortium, described House Bill 26-1030 as an economic development program with strong protections for the environment, water, air quality and ratepayers. She said it sets clear expectations for companies seeking tax incentives.
In contrast, she said Senate Bill 26-102‘s strict rules would prevent data centers from coming to Colorado.
“The practical effect … is that we will not see future investment,” Solin said, adding that translates to lost opportunities for grid upgrades, jobs, school funding and property taxes in communities shifting away from fossil fuels.
HB 26-1030, sponsored by Reps. Alex Valdez, D-Denver, Monica Duran, D-Wheatridge and Sen. Kyle Mullica, D-Thornton, creates a new state authority to review and certify projects. To qualify, data centers must invest at least $250 million in infrastructure within five years, pay prevailing wages, create good jobs, use water-efficient cooling, meet energy-efficiency standards and consult utilities early on power needs.
Approved projects would get a full state sales-and-use tax exemption on equipment and infrastructure for 20 years, with a possible 10-year extension if they stay in compliance. A legislative fiscal note estimates modest initial revenue loss followed by net gains from economic activity, with annual state costs around $600,000–$700,000 to run the program.
The bill lets utilities propose plans to add power for big new loads, with the aim of protecting other customers from extra costs.
Solin said the industry has agreed with utilities on a 2040 target for 100% clean energy service, a step she called meaningful.
The group considers a 2031 requirement for 100% renewable energy unrealistic, given current timelines.
Under SB 26-102, starting in 2031, operators must get 100% of their electricity from new — not existing — renewable sources, including solar, wind, geothermal, biomass, and limited small hydro.
Operators must also either pay in advance or sign a 15-year contract to cover the incremental costs required to support the data center’s load, including generation, transmission, distribution, and other necessary resources.
Operators must commit to support energy-saving programs, report power usage annually, and — in disproportionately impacted communities (DICs) — conduct impact reviews, hold hearings, and provide community benefits.
Utilities cannot connect new centers or offer special rates unless those rules are met and reliability remains strong. The legislation, sponsored by Sen. Cathy Kipp, D-Fort Collins and Rep. Kyle Brown, D-Louisville, seeks statewide model guidelines for data center development.
SB 26-102’s legislative declaration warns that rapid data center growth could raise costs for regular customers, strain the grid, slow clean-energy progress, and harm public health in vulnerable areas. It emphasizes that large load users should pay their full share and support the state’s clean-energy goals without compromising affordability or reliability.
Kipp told The Sum & Substance, an online news site published by the Colorado Chamber of Commerce, that she is not aiming to prohibit data centers — but that their operations here must not act as a barrier to Colorado achieving its goal of net-zero-emission by 2050. She added that residents should not subsidize major tech companies, such as Meta, Google and Amazon.
She also justified her proposed legislation by saying that data centers use energy in such quantities that threaten Colorado’s environmental goals.
“It’s not that we’re trying to ban them. We’re trying to put effective guardrails around the industry as we learn of the mistakes of others,” Kipp told The Sum & Substance. “We think that we are proposing something that is very reasonable.”
Solin of the Data Grid Consortium emphasized that data centers need constant, uninterrupted power and cannot rely on forced reductions or shutdowns.
“A mandated draw-down of power is not workable,” she said.
The Data Grid Consortium supports small modular nuclear reactors as promising clean power. Solin noted that HB 26-1030 includes nuclear as eligible, while SB 26-102 focuses only on renewables and by implication excludes nuclear energy.
U.S. demand for data centers is expected to triple by 2035, with tech firms planning $650 billion in related spending this year, according to supporters.
In a statement, Dave Davia, president and CEO of Colorado Concern, said his group supports one bill and opposes the other.
“One bill will create a pathway to enable them to be built in Colorado, positioning our state to compete,” he said. “The other bill … is a de facto prohibition on the development of these infrastructures. We oppose legislation that artificially constrains our power supply or our economic potential.”
The Sum & Substance, an online news site published by the Colorado Chamber of Commerce, contributed to this article.
©2026 The Gazette, Distributed by Tribune Content Agency, LLC.
