Complete Colorado

Challenging Colorado business climate keeps data centers at bay

A recent episode of Independence Institute’s* PowerGab energy podcast looked at the growing debate over data centers and the role Colorado’s energy and regulatory regime plays in attracting—or discouraging—the industry. Hosts Jake Fogelman and Amy Cooke were joined by policy analyst Sarah Montalbano to discuss electricity demand, water use, and potential policy changes, among other issues.

The trio began with a discussion of Denver’s recent one-year moratorium on new facilities, with Montalbano noting Colorado is not currently a major destination for large-scale facilities. While several companies are headquartered in Colorado, they build elsewhere because of what she described as a challenging regulatory and business environment.

Montalbano argues that water use concerns are often overstated as some frequently cited figures include indirect uses, such as electricity generation and semiconductor manufacturing. And on claims that data centers increase electricity rates. Montalbano said outcomes depend heavily on energy policy. States with sufficient, reliable power capacity can spread costs out more broadly, while Colorado’s energy policies, like retiring dispatchable energy sources and heavy-handed electrification mandates, create challenges.

Policy changes discussed include allowing data centers to build their own power sources, or operate under consumer-regulated electricity models.

You can see the entire episode here, or watch it below.

* Independence Institute is publisher of Complete Colorado.

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