DENVER — A bill has been introduced in the Colorado state legislature to propose regulations on data centers continuing to pop up around the state.
It's a discussion Denver7 has been listening to with many people struggling with the amount of water and energy needed to make them function.
Science and Tech
Data Center could use more power than DIA, prompts worries about bills
HB26-1030 aims to hold developers accountable to meet climate goals, while also working to boost the economy.
Colorado House of Representatives Majority Leader Monica Duran, D-Jefferson County, and state Rep. Alex Valdez, D-Denver County, shared the below joint statement about the proposed regulations with Denver7:
“Data centers are popping up across the state, and we have the opportunity to take action now to ensure we can balance our environmental goals and an industry that can create good-paying careers for Coloradans. These data centers create jobs in Colorado’s rural communities. Our legislation would incentivize companies to build data centers in our state if they meet environmental safeguards, like energy efficiency standards and water-efficient cooling systems, including closed loop. We are committed to utilizing every tool we have to grow Colorado’s economy for working people. This bill would support companies as they create jobs in our communities and ensure these data centers are in alignment with Colorado’s climate goals.”
Those who work with and around data centers, like Ryan Mallory, take issue with the bill.
Mallory is the CEO of Flexential, a data center platform operator with five data centers in the local market.
"It is not advantageous for the data center and technology community," he said.
Mallory pushed back on public concern about power use. He said data centers pay power companies to access it.
"We pay for our own substations, therefore we help subsidize the rate base that's going into the community, so that there is a misnomer about that," he said.
Denver7 asked Mallory about water use, too. He said data centers don't take the water from municipalities.
"We operate our facilities at a zero, WUE, which stands for water use efficiency. We have no water impact on the communities outside of just drinking fountains and, you know, local bathrooms and so no abnormal impact to the communities," Mallory said.
The new bill would make sure people like him meet environmental safeguards when creating new centers.
'The program allows a 100% state sales and use tax exemption on qualified purchases to the operator of a certified data center," the bill states.
To be certified, the operator must meet a few requirements including:
- "Commit to complying, and ensure that the utility that provides electricity to the data center also complies, with craft labor requirements, apprenticeship utilization requirements, and prevailing wage requirements; and
- Commit to obtaining certification under one of several energy efficiency standards, implementing water stewardship strategies that optimize operational water management, ensuring that all backup power generation associated with the data center project meets specified requirements, and consulting with the department of natural resources."
The bill is set to be discussed in the House Energy and Environment Committee on February 12.
