Jan 27, 2026 | Posted by Abdul-Rahman Oladimeji
Colorado could offer tax breaks to data center developers that pledge to power their facilities with renewable energy.
A new bill proposed in the state’s House of Representatives would offer a 20-year, 100 percent sales and use tax exemption for qualifying data centers. The bill would see a new body, the Colorado Data Center Development Authority, set up to manage proposals for data center projects.
“Despite having a strong technology ecosystem, despite having a strong workforce here in Colorado, available power, available land — the state is not yet a strong data center market,” said Dan Diorio, vice president of state policy for industry group the Data Center Coalition, in comments reported by Colorado Newsline.
“Across the country, we are seeing the negative impacts of large data center development without meaningful community and ratepayer protections in place,” said Megan Kemp, state legislative representative with environmental group Earthjustice’s Rocky Mountain Office. “Colorado has the opportunity to lead in ensuring that data centers develop without harm to our residents. Now is the time to advance legislation that truly puts Coloradans’ health, well-being, and wallets first.”
