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Colorado lawmakers duel over data centers: Grant millions in tax breaks or regulate them without incentives?

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Colorado lawmakers duel over data centers: Grant millions in tax breaks or regulate them without incentives?


Colorado lawmakers are deciding this year between two disparate approaches on data centers — one that aims to lure them to the Centennial State with millions of dollars in tax incentives and another that would implement some of the strictest statewide regulations in the country on the booming tech industry.

Either of the two competing bills would create the state’s first regulations specific to data centers. Sponsors of both bills say they hope to minimize environmental impacts from the power and water demands of the centers, while also ensuring that the cost of new infrastructure they need doesn’t wind up on residents’ electric bills.

Both bills are sponsored by Democrats but differ widely in what they’d do.

The bill supported by the data center industry — House Bill 1030 — would incentivize companies to comply with regulations in exchange for large tax breaks. The legislation would not regulate data centers whose owners forgo a tax break.

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The other bill — Senate Bill 102 —  would offer no incentives, instead imposing regulations on all large data center development across the state. It is supported by environmental and community groups.

“We want to make sure that as data centers come here, they come on our terms,” said Megan Kemp, the Colorado policy representative for Earthjustice’s Rocky Mountain office.

The bills have landed as debate over the future of data center regulation intensifies across the state. Data centers house the computer servers that function as the main infrastructure for the digital world. They crunch financial data, store patients’ health information, process online shopping, register sports betting and — increasingly — make possible the heavy data demands of artificial intelligence.

Several companies have begun construction on large data centers across the Front Range in recent years. A 160-megawatt hyperscale facility is under development in Aurora and could consume as much power as 176,000 homes once completed.

The construction of a 60-megawatt data center campus in north Denver has angered those who live by the site and prompted Denver city leaders last week to call for a moratorium on new data center development while they craft regulations for the industry. Larimer County and Logan County have enacted similar moratoriums.

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Hundreds gathered Tuesday night at a community meeting about the northern Denver campus owned by CoreSite. Frustration in the crowd — which filled overflow rooms and the front lawn of the building that hosted the meeting — erupted as residents of the neighborhoods surrounding the center expressed concerns about how it would impact their air quality, power and water supplies.

Attendees said they did not know the data center was being built until they saw construction underway.

CoreSite leaders had planned to attend the meeting. But they pulled out of participating the day before because of safety concerns, company spokeswoman Megan Ruszkowski wrote in an email. She did not elaborate on the concerns. A Denver police spokesman said the department did not have any record of a police report filed by CoreSite in the days prior to the meeting.

CoreSite’s absence left officials from the city and utilities to answer the crowd’s questions and field their frustrations. City leaders told attendees that they had no say in whether the data center could be built because there are no city regulations specific to the industry.

“Data centers are proliferating quickly and we don’t know all the impacts,” said Danica Lee, the city’s director of public health investigations. “That’s why we need this moratorium.”

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Promises of future regulation meant little to the residents of Elyria-Swansea, where the data center is scheduled to go online this summer. More than an hour into the meeting, a man took the microphone. He noted that so much of the conversation had focused on technicalities — but the information provided had not answered a question on many residents’ minds.

“How do we stop it now?” he asked, to a loud round of applause from the room.

An overflow crowd watches through the windows during a community meeting at Geotech Environmental to discuss concerns about a new data center under construction in the Elyria-Swansea neighborhood in Denver on Tuesday, Feb. 24, 2026. (Photo by AAron Ontiveroz/The Denver Post)

Transformative opportunity?

Some in the state Capitol think more data centers would be beneficial for Colorado.

Supporters of the tax incentive bill in the legislature said luring the industry to Colorado would create high-paying jobs, help pay for electrical grid modernizations and strengthen local tax bases.

“This could be transformative for the state,” said Rep. Alex Valdez, a Denver Democrat who is one of HB-1030’s sponsors.

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In exchange for complying with rules, data center companies would be exempted from sales and use taxes for 20 years for purchases related to the data center, like the expensive servers they must replace every few years. After two decades, the companies could apply for an extension to the exemption.

To earn the tax break, data center companies would have to meet requirements that include:

  • Breaking ground on the data center within two years.
  • Investing at least $250 million into the data center within five years.
  • Creating full-time jobs with above-average wages, though the legislation doesn’t specify how many jobs would be required.
  • Using a closed-loop water cooling system that minimizes water loss, or a cooling system that does not use water.
  • Working to make sure the data center “will not cause unreasonable cost impacts to other utility ratepayers.”
  • Consulting with the Colorado Department of Natural Resources about wildlife and water impacts.

While the bill would exempt data centers from sales tax on some purchases, they would still be on the hook for all other taxes, Valdez said, and would bring both temporary and permanent jobs. The bill does not specify how many permanent jobs must be created to qualify for the tax break.

Dozens of other states have enacted tax incentive programs for data centers. Such incentives are a key factor that companies weigh when deciding where to build, said Dan Diorio, the vice president of state policy for the Data Center Coalition, an industry group.

“Colorado is not competitive right now,” he said.

Figuring out the projected impact of the bill on the state’s finances gets complicated.

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The legislature’s nonpartisan analysts estimated that the state would miss out on $92.5 million in sales tax revenue in the first three years, assuming a total of 17 data centers would qualify for the tax breaks in that time period.

But Valdez said that is revenue that the state otherwise wouldn’t see if the data centers weren’t built here. And the companies would still pay all other state and local taxes, he said.

“We see it as unrealized revenue, rather than a tax cut,” he said.

Some of that lost tax revenue would be offset by an increase in income taxes paid by low-income families, according to the bill’s fiscal note.

That’s because the projected decrease in sales tax revenue in the first year of the program would decrease the amount of money available for the state to provide its recently enacted Family Affordability Tax Credit. State law ties the amount available for the family tax credit to state revenue growth and whether the state collects money above a revenue cap set by the Taxpayer’s Bill of Rights. TABOR requires money above that level to be returned to taxpayers.

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If the state doesn’t have excess revenue, it can’t fund that tax credit.

In the next fiscal year, which begins in July, data center companies would avoid paying $29 million in sales taxes, which would trigger a change in the family tax credit. Low-income families would be made to pay a total of $106 million more, the fiscal note estimates.

Bill sponsors are planning to address the fallout for the tax credit in forthcoming amendments, Valdez said.

“We’re not out to trigger any negative impacts to low-income families,” he said.

Tyler Manke skateboards at Elyria Park near a new data center being built by CoreSite in the Elyria-Swansea neighborhood of Denver on Tuesday, Feb. 24, 2026. (Photo by AAron Ontiveroz/The Denver Post)
Tyler Manke skateboards at Elyria Park near a new data center being built by CoreSite in the Elyria-Swansea neighborhood of Denver on Tuesday, Feb. 24, 2026. (Photo by AAron Ontiveroz/The Denver Post)

Baseline guardrails

Forgoing tax dollars during a state budget crisis is a hard sell to Rep. Kyle Brown, a Louisville Democrat sponsoring the regulatory bill. He and other supporters of SB-102 aren’t convinced tax incentives are necessary to bring data centers to the state.

Major construction projects are already underway, he said. In Denver, CoreSite chose not to pursue $9 million in tax breaks from the city but continued construction on its facility regardless.

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“The point of our policy is (putting) reasonable, baseline guardrails on this development so it can be smart,” Brown said.

Brown last session co-sponsored a failed bill with Valdez that offered tax incentives to data centers. Since then, however, he’s seen other states that offer tax incentives express buyers’ remorse, he said.

Brown pointed to concerns in Virginia about rising electricity costs due to data center demand and a proposal by the governor of Illinois to suspend the state’s tax credit so that the impacts of the data center boom it sparked could be studied.

His bill this session — co-sponsored by Sen. Cathy Kipp, a Fort Collins Democrat — requires that data centers over 30 megawatts:

  • Draw as much power as possible from newly sourced renewable energy by 2031.
  • Pay for any additions or changes to the grid needed to serve the data center.
  • Adhere to local rules about water efficiency.
  • Limit the use of backup generators that consume fossil fuels; if such generators are necessary, they must be a certain type that limits emissions.
  • Conduct an analysis of the data center’s impacts on local neighborhoods, engage in community outreach and sign a legally binding good-neighbor agreement if the community is disproportionately affected by pollution.

Owners of data centers would also need to report metrics annually to the Colorado Department of Public Health and Environment. They would cover the center’s annual electricity consumption, how much of that power came from renewable sources, the total number of hours backup generators were used and annual water use.

Utilities, too, would face additional requirements.

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Congress looks to help fund new control tower at growing Northern Colorado airport

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Congress looks to help fund new control tower at growing Northern Colorado airport


As Weld County and Northern Colorado continue to grow, leaders at the Greeley-Weld County Airport are preparing for an expansion they say will position the facility as a major transportation and economic hub for the region.

Airport director Cooper Anderson said the airport has reached a point where additional growth on its current footprint is no longer possible.

“We have reached our capacity, here, as far as growth on the south side of the airport,” Anderson said.

The airport is now developing land northeast of its existing facilities to accommodate larger aircraft and future aviation services. 

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“We needed to find a new area to expand and allow larger corporate jets, and eventual charters and commercial service down the road,” Anderson said.

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Construction is already underway or completed on several infrastructure projects, including expanded taxiways and sites for future hangars. Anderson said the area being developed was farmland just a few years ago.

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“It used to be corn fields, but since then we have ran water, sewage and gas is coming next week,” Anderson said.

The expansion effort has been supported by a combination of local and federal funding. Anderson noted that approximately $850,000 in federal funding was previously secured to develop a master design and long-term vision for the airport, with local money helping execute the plan. Additional federal tax dollars in recent years also helped fund taxiway expansion projects that have prepared the airport for future growth.

Now, Colorado leaders in congress are seeking millions more in federal funding to continue that momentum.

Rep. Gabe Evans, who represents Colorado’s 8th Congressional District, said the airport plays an important role in one of the nation’s busiest aviation corridors.

“The northern Front Range of Colorado is one of the densest airspace systems in the nation,” Evans said.

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Before entering Congress, Evans served as a Black Hawk helicopter pilot out of Buckley Air Force Base and frequently flew throughout Northern Colorado. He said improvements at the Greeley airport would have benefits extending well beyond Weld County, noting other airports are overcrowded to the point of causing some nearby residents to complain of sound.

“It really does impact the entire Front Range,” Evans said.

Evans is working to secure additional federal funding that would help construct and staff an air traffic control tower in Greeley while supporting continued infrastructure improvements.

“When those bills are passed and sent to the president’s desk, writtten into those bills as a line item is several more million dollars to continue to expand the infrastructure at the Greeley airport,” Evans said. “So you can actually start to bring business flights into the Greeley airport and pull a lot of that traffic off of some of the overburdened airports in the metro area.”

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Anderson said federal support demonstrates broad confidence in the airport’s future as a hub for business and travel.

“Having the addition of Congressman Evans’ office, and their congressional funding, I think shows how much everybody believes in this,” Anderson said.

That confidence is already attracting attention from the private sector, Anderson said, with major companies expressing interest in locating operations at the airport.

“Greeley’s population is booming. Weld County’s population in general is growing,” Anderson said.

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Airport leaders view the expansion as a way to support economic development across the region.

“By us growing, and expanding our services, we are also helping the city of Greeley, Weld County and surrounding Northern Colorado communities and being able to grow economic opportunities for them,” Anderson said.

As the airport prepares for future growth, officials have also upgraded emergency response capabilities. The airport recently acquired two fire trucks that will improve its ability to respond to incidents involving larger aircraft. The vehicles also allow firefighters to use newer, non-toxic firefighting foam, replacing older products that posed environmental concerns.

Airport officials say those improvements will help ensure the facility can safely accommodate larger aircraft and increased traffic in the years ahead.

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‘We couldn’t do this in another place’: Horror film looks to make Southern Colorado the next Hollywood

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‘We couldn’t do this in another place’: Horror film looks to make Southern Colorado the next Hollywood


COLORADO SPRINGS, Colo. (KKTV) – It’s commonly understood that many of the best blockbusters are made in Southern California but a group of local filmmakers wants to prove Southern Colorado can be a destination for both aspiring and established auteurs.

Shooting began in Fountain this spring on ‘Devil In The Trunk’, a new horror film set in Colorado’s eastern plains.

“Devil In The Trunk is about a small-town woman who encounters a mysterious traveler driving this car right here who claims to have the actual devil trapped in the trunk of her car,” executive producer Leon Kelly said. “As you can imagine, when the devil comes to your small town, terrible and dangerous things can happen.”

Director, writer, and producer Evan Alderson said they wanted to make the film as Colorado as possible.

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“We ended up finding a local Colorado writer, and we ended up collaborating to come up with this idea that could act as a love letter to Colorado,” he said.

While Colorado may be most famous for its soaring mountain peaks, Kelly said the plains were a much more fitting setting.

“It’s both beautiful and dangerous at the same time,” he said. “One of the underlying themes is the desolation and the loneliness and how vulnerable some folks can be in small towns and out in rural areas.”

Kelly said not only is the film meant to showcase Colorado’s natural beauty, but also to showcase the talent of the people who live there.

“It’s a proof of concept, to show that we have not only the talented people but the infrastructure that can support really high-quality, independent films,” he said. “We know we’ve got great filmmakers here, we know we have really talented craftspeople here, but they don’t necessarily have the opportunities to work on something like this on this scale that’s a narrative film.”

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With the Sundance Film Festival set to make its debut in Boulder in 2027, Kelly said people are asking new questions about what Colorado can do for those looking to tell stories on the big screen.

“Can Colorado become a hub? Can that be a place, a destination where others come? Can that be a place where our own filmmakers can come into their own?” he said.

Alderson said once the film is finished they will put it out on the film festival circuit, and even look for distribution.

“That will look like a theatrical release, potentially, in an ideal world, or it will be straight to streaming services like Amazon, Hulu, that type of stuff,” he said.

Copyright 2026 KKTV. All rights reserved.

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Victim shot in the face takes the stand in second day of Colorado trial for Brent Metz

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Victim shot in the face takes the stand in second day of Colorado trial for Brent Metz


The now 19-year-old victim, who Brent Metz is accused of shooting in the face, took the stand in Metz’s trial Thursday. Metz, a former town of Mountain View councilman, was in the second day of his trial hearings.

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The teenager, who has recovered well physically from the shooting back in September of 2024, told the story of what led up to the shooting, then said he blacked out for a period after he was shot.

The young man, Jack (CBS Colorado is not sharing the victim’s last name) said he and his younger friend went to ask for permission to take pictures at a scenic home near Conifer. At first, they parked outside the gated driveway and tried to figure out how to contact someone there. They then hopped a low fence and went up to the house. 

Jack said he had difficulty locating a front door on the home, but the large property also had a garage and barn. They heard music coming from the barn, which is a common practice for people with animals to leave music playing to calm animals while away.

“We decided to knock on the barn door and then after a couple a minutes we decided to go back down the driveway,” Jack said in court. 

The two friends went back over the fence and moved the car to a spot not blocking the driveway along the right-of-way at the road. Minutes later, Brent Metz drove up in his black GMC pickup truck, blocking their car in. Metz got out. Jack testified that he raised his hands at some point, a claim the defense questioned in cross examination. He related that he was getting out to try to greet the person getting out of the truck.

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“I just (got) the door open I kind of turned to open my door and then turned to get out, and I saw someone get out, and then it was black,” Jack said. 

The victim soon awoke bleeding and injured. “I looked down and I thought I was going to die. So I said that a couple times,” Jack testified.

“My mouth was on fire and it felt like my upper lip was gone, and I could taste little fragments,” Jack told the court. Jack’s friend and Metz tried to help him out of the car.

“The one who shot me was trying to help me get out of the car.”

Soon after, Metz left his side.

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“He helped me sit down, and then he walked away,” Jack said.

“I started to realize I needed to stay as calm as I could, and when I got out of the car, I sat down, but I was very anxious,” Jack recalled.

Later, the victim had to have surgery in order to have the bullet fragments removed from his face. One of the fragments was more than an inch in size. He had trouble breathing through his right nostril due to the injuries to his nose. His eye was blackened for a long time, and a tooth was shattered.

Jack did not remember Metz saying much.

The testimony followed hours of testimony from a gun testing expert who looked at the weapon at the request of the prosecution. Derek Watkins is an engineer who said he has seen many claims of weapons not working properly.

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“My experience is that, if you manufacture a firearm, at some point in time, it’s going, you’re going to run across the claim that it behaves in a defective manner,” Watkins said.

Metz’s defense is centered on a claim that the Sig Sauer P320 he had fired on its own without Metz pulling the trigger.

“There was nothing about the gun through the testing or through the examination of the components indicating it would function any other way than it was designed and left the factory,” Watkins said.

The defense had little luck getting Watkins to agree the gun could fire on its own, but did try to point out to the jury in questions that Watkins has previously testified in civil litigation about the gun’s integrity on behalf of the manufacturer.

The case continues Friday when it could wrap up. Metz faces four charges, the most serious of which is second-degree assault, but also two menacing charges and one of illegal discharge of a firearm.

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