By Sara Schueneman

As energy costs soar and corporations look for new places and sweetheart deals to build data centers, consumers risk being electrified by a bill before the Colorado General Assembly.

If signed into law, the Data Center & Utility Modernization Bill (HB 26-1030) would provide some of the world’s wealthiest corporations with massive tax relief to build facilities that support their cloud computing, artificial intelligence and other resource-thirsty initiatives while extending little to no consumer protections for the everyday Coloradan just looking to keep their lights on.

As the legislature grapples with another year of bone-deep budget cuts that will affect people of all ages, our state can’t afford to exempt data centers and their operators from paying their own way, most notably by giving them a 100% sales tax cut. What essential services or popular tax credits will potentially be cut or axed to cover these facilities’ bills?

Looking closely at the legislation, there is no guarantee the added strain on resources and costs for grid improvements won’t lead to homeowners and renters seeing their electricity bills go up. And nationwide trends and in-state authorities are already sounding an alarm every residential ratepayer needs to hear clearly.

Data center development has led to bill hikes across the country, and Xcel Energy — one of Colorado’s major utilities — expects its peak power demand to surge over time and as new data centers are built. For a sense of scale, consider some data centers require as much power as some small cities. At the same time, the utility forecasts residential rates may increase by 50% in the next five years.

The bad news for everyday consumers doesn’t even stop within a decade.

HB 26-1030 sets the stage for a new certification process and a “Data Center Development Authority” that would allow these businesses to secure tax breaks for 20 years, at a minimum.

Data centers would be required to invest $250 million in the state to be certified by this new regulatory body; however, they could write off significant costs. That means there is a chance our communities will never actually benefit from these cash infusions in meaningful, tangible ways.

A recent Bloomberg report found Virginia, the world’s largest data center market, lost $1.6 billion in potential revenue due to tax breaks for data centers; Texas lost $1 billion. That is a fiscal pit our state may never climb out of.

Coloradans of all ages feel the shock of every new rate hike and every new surge in the cost of living. However, for many older adults on fixed incomes, higher utility bills could mean making difficult choices between paying for utilities and affording essentials like medications, food, or rent. Voters and consumers should have more voltage at the statehouse than the corporate powerhouses looking for tax breaks.

AARP Colorado and other consumer and community advocates believe there is a better approach to data center development in our state, a path that promises better accountability for their operations and stronger consumer protections that safeguard taxpayers. Fortunately, Sen. Cathy Kipp and Rep. Kyle Brown are working on legislation to do just that, which will be introduced later this legislative session.

The bottom line for AARP Colorado: ratepayers of any age should not be footing the bill for big tech companies. Colorado legislators must insist wealthy companies pay their fair share.

Sara Schueneman is AARP Colorado’s state director, focusing on priority issue areas like supporting family caregivers, making the state’s communities even more livable, and empowering Coloradans 50-plus to lead healthy lives.