Loading map…
Regbase

The Data Center Divide

Lake County

For Lake County, see Colorado’s statewide laws and regulations below. No additional county-specific measures are listed in our research.

Pro-Data Center Policies

Colorado receives a default rating of 2 because our research identifies no current or future statewide data-center-specific laws or regulations that would prevent you from building a data center. Local rules and general permitting requirements may still apply.

Incentives

Water and electricity

The introduced bill would permit reduced corresponding charges for operators participating in a flexible interconnection tariff or program that provides system benefits, without cross-subsidization by other customer classes. This is an express participation-based charge reduction, not a grant or general infrastructure subsidy.

failed · Statewide
Would have required large data centers to use renewable electricity, cover their grid costs, report energy and water use, and meet local siting and community-impact rules, but the bill was postponed indefinitely and did not become law.Colorado SB26-102 (2026)

What this means

If enacted, the bill would make large data centers substantially harder to build and operate: they would need to secure renewable power, pay major grid costs, and meet water, reporting, and utility requirements. Projects in disproportionately impacted communities would face extra studies, public meetings, and community-benefit agreements; these burdens are significant, though the bill would not ban data centers outright.

People behind it

  • Prime sponsor; introduced and explained SB26-102.

  • House sponsor of SB26-102.

  • Responsible for determining the hourly renewable-matching requirement and for related oversight and reporting.

Show 6 more peopleShow fewer people
  • Consults with the Public Utilities Commission on hourly-matching determinations.

  • Consults with the Public Utilities Commission on hourly-matching determinations.

  • Receives and publishes data-center reports and selects third-party contractors for cumulative-impact analyses.

  • Publishes and periodically reviews model codes for large-load data-center development.

  • Review development permits and site assessments, determine applicable water-efficiency requirements, and may set penalties for community-benefit-agreement noncompliance.

  • Apply the bill’s interconnection, cost-allocation, clean-energy, demand-response, and reporting requirements.

Restrictions & requirementsHide restrictions & requirements16
  • Beginning January 1, 2031, operators must obtain renewable electricity equal to 100% of annual consumption and meet the hourly-matching percentage the commission determines is feasible. The renewable resources must be new and incremental and deliverable to the grid serving the center or directly to it. Beginning January 1, 2031

  • A utility may not interconnect or supply a covered center unless its operator makes an upfront payment or signs a utility contract of at least 15 years covering specified infrastructure and resource costs. An operator using utility power must pay those costs through contracts of at least 15 years. A utility may also require payment or a contract for backup-power costs from a self-supplying center. contract of at least fifteen years

  • A utility may not interconnect or supply a center unless it determines and ensures the addition will not harm reliable service to existing customers, hinder applicable clean-energy or emissions targets, or increase the utility’s greenhouse-gas emissions over the following 15 years compared with the projected case without the center. The center must pay the utility’s costs of making this determination. does not increase the utility’s greenhouse gas emissions

  • On or after January 1, 2031, a utility may not interconnect or supply a center unless it has verified that the operator complies with the commission’s hourly-matching requirement. On or after January 1, 2031

  • Utilities may not offer large-load data centers economic-development rates. shall not offer economic development rates

  • Utility interconnection agreements must require an upfront payment or security and significant monthly demand charges, unless the operator participates in a flexible-interconnection tariff or program that provides system benefits. A utility may require flexible interconnection as a condition of interconnection. significant monthly demand charges

  • Operators must contribute to utility demand-side-management programs, with the contribution based on the center’s annual electricity consumption and the programs’ cost-recovery mechanisms. This applies while the center is connected to the utility system, even if another source supplies its electricity. shall contribute to utility demand-side management programs

  • Operators must implement water-efficient technology to optimize operational water management, as determined by the local government with jurisdiction over the center. water-efficient technology

  • On-site backup power must maximize reliance on renewable resources and storage where technically and economically feasible. Operators may use on-site combustion-based backup generation only after evaluating and deploying noncombustion alternatives to the maximum practicable extent. Combustion generators are limited to emergencies and required testing or maintenance, with testing and maintenance capped at 50 hours per year; they cannot be used for routine peak shaving, economic dispatch, market services, or nonemergency grid support. The bill also imposes fuel, emissions-control, monitoring, and operating requirements, including specific standards for fuel-oil and gas-powered generators. limited to use in an emergency

  • Beginning no later than June 30, 2028, operators must report annually to the Department of Public Health and Environment detailed information about electricity use and supply, water use and sources, cooling, backup generation, and related measures. no later than June 30, 2028

  • With a development-permit application, the developer must submit a site assessment describing anticipated water use and sources, on-site air emissions, potential effects on agricultural, historic, and cultural resources, efforts to locate pollution sources away from sensitive places, and public-engagement opportunities. submit a site assessment

  • Local governments may not zone large-load data centers as a use by right, so their development cannot proceed under zoning standards that dispense with discretionary approval. shall not allow large-load data centers to be zoned as a use by right

  • For a proposed center in a disproportionately impacted community, or a qualifying expansion there, the developer or operator must complete a cumulative-impacts analysis before development or expansion begins. A third party selected by the Department of Public Health and Environment must conduct it, and the developer or operator pays the cost. The local government must consider the analysis and whether proposed mitigation is sufficient when reviewing the permit. before the development or expansion begins

  • Before applying for a permit for a center in a disproportionately impacted community, or a qualifying expansion there, the developer or operator must hold at least three public hearings or comment periods at least 60 days before filing the application, with at least one in the affected community. The process must include specified meeting times, at least 30 days’ public notice, and outreach materials translated into the community’s top two languages. at least sixty days prior

  • Before development or a qualifying expansion in a disproportionately impacted community begins, the developer or operator must enter into a legally binding, publicly disclosed community-benefit agreement. Negotiations require consultation with the local government and a coalition of at least three nearby community organizations, and at least five stakeholder meetings, including two offering public comment. legally binding and publicly disclosed community benefit agreement

  • Operators must meet labor standards, including prevailing wages for fully employed employees, participation in a registered apprenticeship program, OSHA 10 or substantially similar training, applicable workplace-site safety-plan requirements, and no documented pattern of wage theft or employee misclassification. provide prevailing wages

Benefits & exceptionsHide benefits & exceptions5
  • The bill sets size thresholds for which data centers are covered: generally, a new center must exceed 30 MW, or multiple centers must exceed 60 MW collectively. Existing centers are covered when they add more than 30 MW, or multiple existing centers add more than 60 MW collectively. Facilities below those thresholds are outside these requirements. The definition of a large-load data center

  • A utility may offer expedited interconnection to an operator that commits to flexible interconnection or to reaching at least 80% hourly renewable matching by 2030. This is optional for the utility, not a guaranteed fast-track. A utility may provide expedited interconnection

  • Operators can meet the bill’s renewable-energy requirements through a utility tariff, contract, or program; power purchase agreements with independent producers; self-supply; or a combination of these options. The chosen approach must cover all the center’s electricity demand and satisfy the bill’s renewable-resource requirements. The available compliance methods

  • Utilities must offer operators at least one demand-response program or flexible-connection tariff. An interconnection agreement generally requires an upfront payment or security and significant monthly demand charges, but corresponding charges may be reduced if the operator participates in a flexible tariff or program that provides system benefits without shifting costs to other customer classes. Charges may be reduced for qualifying participation

  • The bill permits on-site combustion-based backup generation if the operator first evaluates and deploys noncombustion alternatives to the maximum extent practicable. Combustion generators are limited to emergencies and required testing or maintenance; testing and maintenance use is capped at 50 hours per year, and emissions rules apply. Backup-generation conditions

Sources

Data provided by Regbase · Cookie preferences · Report missing data