On June 27, Colorado Governor Jared Polis said in a stage interview at the Aspen Ideas Festival that he supports luring AI data centers to the state, provided they keep utility rates in check and align with water use. As the state remains caught between surging energy demand and renewable-energy targets, the governor laid out a pragmatic, conditional stance.
June 27, 2026 · Aspen Ideas Festival
Colorado Weighs the AI Boom: Data Centers Welcome — On Two Conditions
Gov. Jared Polis backs new data centers only if they lower utility rates and stay consistent with water use — as the state juggles surging AI demand against energy and drought pressures.
57–60
Existing or planned data centers, mostly in Denver metro
8.5 GW
Projected additional demand by 2040
+8%
Possible rise in wholesale power costs by 2030
37+
States running data-center incentive programs
Colorado's Generation Mix Is Shifting
Coal's share of generation, 2014 vs 2024 — shown to scale
Renewables have more than tripled in a decade — goal: 100% renewable by 2040
Tax Incentive Bill
Attract investment
$250M+ invested within 5 years; jobs at 110%+ of local average wage
75% of new power non-carbon-emitting; closed-loop cooling
Diesel generators meeting EPA standards
Guardrails Bill
Environmental & rate protection
From 2031, offset annual usage with renewables
Fully fund 15+ year grid upgrade contracts
Annual energy and water use reporting
Legislative stalemate: as of May 2026 both bills appeared headed for failure; Denver approved a one-year moratorium amid disputes over projects like CoreSite.
The concern
Water use up to hundreds of thousands of gallons a day, diesel emissions, noise and drought tension. 54 organizations argue giants like Google and Microsoft should bear infrastructure costs.
The upside
Construction, jobs and tax revenue — with a warning that projects could relocate to other states without incentives.
Polis's Pragmatic Line
"Of course, there needs to be data centers. As long as you can show me it's going to reduce our utility rates and be consistent with our water use, then absolutely we want them here."
An "all-of-the-above" approach balancing economic development against higher costs and emissions for residents — under an administration whose term ends January 2027.
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