Colorado has become a leading state for innovative technology companies to set up shop. The question is: Can — and will — we keep it up? That may depend on whether we’re hospitable to data centers, a critical element of the 21st century economy, especially in the age of AI. They are central to the future of the entire tech sector. This legislative session will feature two bills on data centers — and they couldn’t be more different. The Democrat-dominated legislature is about to pit innovation against environment. We’re not sure why they can’t go hand-in-hand. House Bill 26-1030, introduced by House Majority Leader Monica Duran and Rep. Alex Valdez, both Democrats, would fully reimburse state sales and use taxes for 20 years for data centers investing at least $250 million in our state. Strings are attached, however. Operators must meet energy efficiency standards, use specific cooling systems and seek approval from a new board that evaluates grid capacity. The idea is to embrace data centers with environmental “safeguards” while offering tax incentives to offset the mandate costs. A competing bill not yet introduced would set restrictions instead of incentives. According to The Sum and Substance, the Colorado Chamber of Commerce’s news service, the bill would require large-load data centers to use renewable energy equivalent to a year’s operations. Upgraded utility infrastructure costs would have to be borne under the pending legislation by any data centers whose peak loads exceed 30 megawatts, and utilities would be barred from offering special rates to data centers. Talk about telling us you don’t want data centers without telling us you don’t want data centers. Fort Collins Democratic Sen. Cathy Kipp, one of the legislators crafting that bill, insists this is simply about “effective guardrails” — and meeting the state’s unrealistic 2050 net-zero-emissions mandate. Valdez counters that this approach effectively bans data centers because of the extraordinary costs. Basic economics teaches us that government doesn’t have to implement a literal ban to have that same effect. What large investor would pour hundreds of millions of dollars into a state imposing prohibitive regulatory costs and mandates? As the Data Center Coalition’s Dan Diorio told The Sum and Substance, data centers help subsidize grid modernization because their investors demand it. The industry will pay its way — if Colorado lets it. Reasonable minds can differ on tax incentives for data centers. But Colorado must stay ahead of the curve on technology and innovation. AI and quantum computing rely on data centers. We shouldn’t be left behind. Moreover, for the state that’s already the sixth most regulated, this seems like another barrier to innovation, opportunity and jobs — in this case, high-paying information-technology and construction jobs.  At the core of this debate is the state’s reckless pursuit of rigid climate targets that, in all reality, won’t move the needle in combatting climate change — but assuredly will endanger jobs, livelihoods and our ability to power Colorado’s homes and businesses. It’s as though Kipp and likeminded lawmakers are saying they don’t want data centers stressing our fragile green grid — and aren’t interested in building out the grid’s capacity to handle them. That’s a tacit admission of the limits of extreme-green energy policies. Government edicts won’t force seismic change, but they will keep opportunity and investment out of Colorado. ...read more read less