Data centers in Colorado

📜 State laws

HB26-1030 (2026): data center tax break bill died · May 7, 2026
This bill would have made certified data centers pay no state sales tax on equipment for 20 to 30 years. In return they had to invest at least $250 million in 5 years, create jobs, and meet energy, water and labor rules. A new state data center authority would have run it. The sponsor asked to kill his own bill, and the House Energy and Environment Committee voted 11-2 to postpone it indefinitely on May 7, 2026. Source

SB26-102 (2026): data center rules bill died · May 11, 2026
This bill would have set rules for data centers using more than 30 megawatts. They would have had to sign utility contracts of at least 15 years, buy enough renewable power to match all their yearly use starting in 2031, and report their power and water use to the state health department each year. Utilities could not have offered them special discount rates. The Senate Transportation and Energy Committee voted 9-0 to postpone it indefinitely on May 11, 2026. Source

SB25-280 (2025): earlier tax break bill died · April 4, 2025
In 2025, a bill called the Data Center Development and Grid Modernization Act offered benefits to attract data centers. It was introduced April 4, 2025 and died in the Senate Appropriations Committee when the session ended. HB26-1030 in 2026 was a similar idea. Source

No state law just for data centers (as of October 2026) · May 11, 2026
After both 2026 bills died, Colorado has no state law that sets special rules or tax breaks for data centers. Cities, towns and counties decide where they can go, and many paused new projects in 2026. The utility commission (PUC) decides how Xcel Energy charges big power users. Source

💡 Who pays for the power

Xcel's proposed data center power rate (case 26AL-0137E) · April 2, 2026
On April 2, 2026, Xcel Energy asked the PUC for a special rate for customers that need 50 megawatts or more, like big data centers. New customers using 20 to 50 megawatts may also be covered. They would pay for the power lines, substations and new power plants built for them, sign contracts of 15 years or more, and pay minimum monthly bills and fees if they leave early. Hearings are set for Oct. 21, 22, 26, 27 and 28, 2026. No decision date is set. Source

PUC rules for Xcel's deals with data centers (2025) · Dec 2025
In late 2025, the PUC told Xcel to use set "principles" when it makes deals with customers needing 50 megawatts or more. Each must pay a $250,000 study deposit that is not refunded, give a cash deposit or letter of credit, sign a 15-year contract, and pay an exit fee equal to 75% of the power it would have used if it leaves early. The PUC warned Xcel it may share the cost if it gives these away and the customer never shows up. Source

How much power data centers want from Xcel · April 2, 2026
In August 2025, Xcel said data centers had asked for 5.8 gigawatts of power, close to its 6.2 gigawatts of power plants in Colorado. Xcel expects data center use could reach 8.5 gigawatts by 2040 and said it may need to spend $22 billion on new power plants and lines. In April 2026, Xcel said big customers will make up two-thirds of its new demand and it needs 950 megawatts of new power plants for them over 5 years. Source

Xcel electric bills went up about $5 a month (August 2026) · Aug 19, 2026
Xcel first asked for $356 million more per year, about $9.94 more a month for a typical home. On Aug. 19, 2026, the PUC approved a smaller increase: about $5 a month (4.77%) for homes and $7 for businesses. New rates started Aug. 29, 2026. This case (25AL-0494E) is about all costs, not only data centers. Source

Black Hills Energy asks for higher bills (southern Colorado) · June 12, 2026
On June 12, 2026, Black Hills Energy asked the PUC for $26.7 million more per year (case 26AL-0232E). After using some refunds, a typical home bill would go up about 8.8% a month. The PUC plans a final decision next year. Source

Co-ops and city utilities set their own rates · Oct 27, 2025
Almost all of Colorado's electric co-ops left PUC control; their own boards set rates after 30 days' notice. City-owned utilities, like Colorado Springs Utilities, are run by their city. Tri-State, which sells power to many co-ops, tried a federal data center rate for loads of 45 megawatts or more, but federal regulators (FERC) rejected it on Oct. 27, 2025, saying it was a state matter. Source

💵 Tax breaks

No state tax break just for data centers · May 7, 2026
Colorado does not have a special state sales tax break for data centers. Bills to create one failed in 2025 (SB25-280) and 2026 (HB26-1030). Source

Local deals can cut a data center's equipment tax · 2026
Counties and cities may make deals that give back part of the business property tax on a company's equipment. State law lets counties make these deals for up to 35 years, no bigger than the county's own tax on that property. For example, Colorado Springs gives 50% or 90% of the city share, usually for 4 years. Each deal is voted on by the local board. Source

🤐 Secret deals and public records

Colorado Open Records Act (CORA) · 2026
Any person may ask to see public records; you do not need to live in Colorado or give a reason. The agency should answer within 3 working days, or up to 7 more working days in special cases. Send your request to the office that keeps the records. Agencies may charge for copies and staff time after the first hour. Business secrets and private company money data given to the government can be kept secret. If you are denied, you can go to district court, but you must give the agency written notice at least 14 days before you file. Source

No state law on secret deals (NDAs) · Oct 7, 2026
We did not find a Colorado law that bans or limits secret deals (NDAs) between local officials and data center companies. Ask your city or county with a CORA request whether it signed one. Source

💧 Water

Who decides water use: water rights and water courts · 2026
Colorado uses "first in time, first in right": people with older water rights get water first in a shortage. The Division of Water Resources, led by the State Engineer, runs the water rights system. Water courts decide new water rights and changes to them. Most data centers buy water from a city or water district, so that provider's board decides if it can serve them. Source

No required water reporting for data centers · May 11, 2026
Colorado has no rule that data centers must report how much water they use. SB26-102 would have required yearly power and water reports to the state health department, but it died in May 2026. Western Slope leaders raised water worries during the 2026 debate. Source

🌫️ Air and generators

Who approves diesel generators: state air permits · 2026
The Air Pollution Control Division of the state health department (CDPHE) issues air permits for backup diesel generators and power plants. A permit goes out for public comment when new pollution limits pass 25 tons a year in areas with bad air (50 tons elsewhere) or when the division decides comment is needed. The usual comment period is 30 days. Past data center notices include EdgeConneX (19 diesel engines, Douglas County, January 2026) and QTS Aurora (98 more generators requested in July 2025). Source

Front Range already has bad ozone · 2026
The Denver and North Front Range area does not meet federal ozone (smog) limits and is classed "severe". That means lower limits for when an air permit needs public comment, and more attention on diesel generators. Source

🙋 How to have your say

Who decides a data center near you · 2026
In Colorado, cities and towns decide land use inside their limits. The county decides for land outside them. Denver and Broomfield are both a city and a county. There are no townships. In 2026, many places paused new data centers, including Denver, Jefferson, Boulder and Larimer counties, and several cities. The PUC decides Xcel's rates; CDPHE decides air permits. Source

"1041" permits: an extra county or city review · 2026
A state law (often called "1041", C.R.S. 24-65.1) lets counties and cities require their own permit for activities of state interest, such as major utility facilities and big water projects. A data center's new power lines or substation, or its water supply, may need a 1041 permit with a public hearing if your county or city has adopted these rules. Source

Speak at zoning hearings · 2026
Rezonings and special use permits go first to a planning commission, then to the city council, town board or county commissioners. Both hold public hearings. Watch the agenda, send written comments before the hearing, and speak during public comment. Get your comment into the official record, because a court will only look at that record later. Source

Appeal deadline: 28 days · 2026
To challenge a city or county land use decision in court (Rule 106(a)(4)), you must file in district court within 28 days of the final decision. Courts do not extend this deadline. The court only checks whether officials broke the law or acted with no basis in the record. Source

Ask for records (CORA) · 2026
Email or write the city, county or state office that keeps the records. Name the project, dates and search words. Ask for emails, contracts, any NDA, and water and power letters. They should answer in 3 working days (up to 10 in special cases). Source

Comment at the PUC on Xcel's data center rate · Oct 20, 2026
Anyone can send a comment to the PUC. Use case number 26AL-0137E (Xcel Large Load Tariff). Comment online, email dora_puc_comments@state.co.us, or speak at the virtual public comment hearing on Oct. 20, 2026, 4 to 6 p.m. (register for Zoom). You can also speak at the start of the PUC's weekly meeting, Wednesdays at 9 a.m. Source

Comment on generator air permits · 2026
Check CDPHE's air permit public notices page. When a data center's draft permit is posted, you have about 30 days to comment online or by email. Your comment and name become public. Source

🧾 Help with your bills

LEAP heating help · Nov 1, 2026
The Colorado Low-income Energy Assistance Program (LEAP) helps pay winter heating bills and fix broken furnaces. Households earning up to 60% of the state median income may qualify. Applications for the 2026-27 season open Nov. 1, 2026; the season runs November through April. Source

Energy Outreach Colorado · 2026
A nonprofit that helps income-qualified households with past-due energy bills, furnace repair and free home energy upgrades. Source

Xcel income-based plan and senior credit · Aug 19, 2026
Xcel has a Percentage of Income Payment Plan (PIP) for low-income customers. In the August 2026 rate case, the PUC updated it and added a $20 monthly "Senior Discount" credit for qualifying customers 65 and older. Source

📞 Who to contact

Colorado Public Utilities Commission (PUC) · Oct 7, 2026
Sets rates for Xcel and Black Hills; runs the data center rate case 26AL-0137E; takes public comments and complaints. 1560 Broadway, Suite 250, Denver. Comments: dora_puc_comments@state.co.us. Source

Office of the Utility Consumer Advocate (UCA) · 2026
Speaks for homes, small businesses and farms in utility cases at the PUC. Source

CDPHE Air Pollution Control Division · 2026
Issues air permits for diesel generators and power plants; posts permits for public comment. Source

Division of Water Resources (State Engineer) · 2026
Runs Colorado's water rights system and issues well permits. Source

Colorado water courts · 2026
Decide new water rights and changes to water rights. Source

Colorado Water Conservation Board · 2026
State water planning (Colorado Water Plan). Source

Department of Local Affairs (DOLA) · 2026
Helps local governments; explains 1041 permit powers. Source

Colorado Energy Office · 2026
State energy policy and programs. Source

Office of Economic Development and International Trade (OEDIT) · 2026
State business recruiting and incentives. Source

Colorado General Assembly · 2026
Find bills and your legislators. The next session starts in January 2027. Source