Posted on July 17th, 2026

The Colorado Coalition for a Livable Climate recently sent the following statement to the sponsor of HB26-102 laying out our hyperscale data center (HDC) policy goals for Colorado:

Colorado Coalition for a Livable Climate Hyperscale Data Center Policy Goals

Addressing SB26-102 as introduced,

and the proposed amended “strikebelow” version

Overview of Position

A statewide moratorium on hyperscale data centers (HDCs) must be adopted to protect Colorado’s climate, health, environment, and democratic principles. Colorado should adopt a statewide moratorium on hyperscale data centers (HDCs)[1] until a comprehensive, enforceable, science-based regulatory structure is established that protects:

  1. Colorado’s greenhouse gas (GHG) pollution reduction climate goals
  2. Public access to water supplies
  3. Water quality and quantity
  4. Regional and local air quality
  5. Public health (from air and water pollution, noise, and light)
  6. Wastewater management systems
  7. Solid waste management systems
  8. Community rights to modify, accept, deny or cease projects/operations
  9. Green spaces/ecosystems
  10. Public transparency and accountability

Until Colorado adopts a statewide moratorium, we encourage every local government to adopt their own HDC development moratorium or ban.

No state or local tax incentives should be provided for HDCs under current conditions.

No “Essential Infrastructure” status should be conferred on HDCs.

Conditions for Lifting the Moratorium

The requirements listed below must be enforced by appropriately-designated and adequately funded state and local agency approval, monitoring, and enforcement for the construction and operation of all HDCs.

Energy sources and impacts are regulated adequately: HDCs must either:

  1. Purchase their power from existing utilities, without
    1. compromising reliable and affordable access to service by other utility customers or
    1. impeding progress toward meeting Colorado’s greenhouse gas reduction goals of 80% reduction in GHG emissions from the electric generation sector by 2030.

OR

  • Build their own 100% renewable (fuel-free) energy sources. Regarding the strikebelow version of SB26-102, the term “clean” must be changed back to “renewable” as in the introduced version of the bill to indicate that no private nuclear, gas or other fossil fuel facilities may be operated by or for HDCs.

Consumer/ ratepayer protections: SB26-102 provisions should apply to HDCs. Large load tariff must require HDCs to cover full cost of service and grid infrastructure, without economic development rates from investor-owned utilities

Water supply and quality protections:

  1. In addition to SB26-102 strikebelow provisions, HDC sector-wide annual water-use limits must be established based on the available and predicted local supplies.
  2. Residences, community service providers, and essential businesses must be given priority for water access over HDCs.
  3. At minimum, monitoring and full disclosure of water pollutants and discharges must be required. Discharges of per- and polyfluoroalkyl substances (PFAs) chemicals must be prohibited.
  4. Significant non-negotiable minimum violation penalties must apply in all circumstances.

Local Air Quality and Backup Generator restrictions:

  1. Adopt SB26-102 provisions for emergency-use only, testing limits, ozone day restriction, and preference for battery backup must apply to all residential areas, not just disproportionately impacted communities (DICs).
  2. Diesel backup generators prohibited in DICs.
  3. EPA Tier 4 pollution controls must be implemented statewide
  4. Mandate and adequately fund Colorado Department of Public Health and Environment (CDPHE) enforcement of provisions, with non-negotiable fines sufficient to deter violations.
  5. Review and revise current Air Pollution Control Division (APCD) air quality permit pollution limits for industrial facilities to ensure that permitting for HDCs in Colorado does not adversely impact local air quality anywhere in the state.

Community engagement/public process

  1. Adopt SB26-102 provisions for public meetings before permit application with smaller threshold (≥15 MW); translated materials; 30-day notice should apply.
  2. A baseline community benefit agreement applies in all cases where local agreements are not secured.
  3. Frontline community organizations, including those representing local BIPOC communities, must be actively included in HDC decision-making.
  4. Community rights must be preserved to allow approval, demand for modifications, or rejection of HDC project plans.

Disproportionately impacted community protections:

  1. SB26-102 provisions for DICs for cumulative impacts analysis; third-party contractor selected by CDPHE; community benefit agreements; community benefit fund should apply.
  2. If follow-up impact analyses show harm or violations for more than 2 consecutive days, the HDC is required to cease operation until fixed.
  • Establish non-negotiable fines sufficient to deter future violations.

Local government authority:

  1. We support SB26-102 provisions for
    1. preserving local land use authority
    1. requiring public hearings regardless of zoning
    1. directing local governments to update codes
    1. local government application fees to cover cost of public hearings and soliciting and recording community input
  2. We support original SB26-102 provisions for the state to develop model codes to help smaller jurisdictions that won’t necessarily have the capacity to develop their own land use codes.
  3. No state-level pre-emption of local control over HDCs

Reporting and transparency:

Adopt SB26-102 provisions for annual energy and water reporting to the state; aggregated public report; legislative and PUC reporting; utility monthly interconnection reporting

Additionally the following must be required:

  1. Mandatory disclosure of clients leasing HDC capacity
  2. Non-Disclosure Agreements (NDAs) prohibited
  3. Proof of adequate insurance that accounts for HDC exposure to climate risks, and climate risk analysis and mitigation plans for HDC developers
  4. Energy and water reporting quarterly in the first 2 years, then twice per year. We note that water use, electricity use and carbon emissions are tightly linked. Optimizing one often means worsening the other. Any changes to the technologies first adopted must be subject to review so that the overall regulations continue to be met.
  5. Reporting costs paid in full or reimbursed by the HDC

Labor standards:

  1. Adopt SB26-102 provisions for prevailing wages; registered apprenticeship participation; OSHA 10 training; no pattern of wage theft or misclassification

[1] Hyperscale data centers are defined here as any facility or site hosting data centers with a combined electricity demand of 20 megawatts or more.