By Joe Antus

Colorado’s business leaders are right about one thing: Colorado is at an inflection point. In a recent letter to Gov. Jared Polis, members of the technology and business community argued Colorado’s innovation economy must not only grow, but “serve the long-term prosperity and well-being of the people and communities of Colorado.”

Signal Tech Coalition represents Colorado tech and business leaders who believe tech is future innovation, and climate change is future risk. We recognize both the promise and the challenges we currently face. Which is why we support the common-sense guardrails for new data center development in Senate Bill 26-102.

Tech is the fastest-growing industry in Colorado, and there is no question data centers, driven by the growth of artificial intelligence and cloud computing, present meaningful economic opportunities for Colorado. They can bring investment, support innovation and contribute to our state’s economic development in a time of widespread uncertainty. We welcome this growth and believe Colorado can be a leader in responsibly integrating this industry into our broader economic future. However, these benefits must not come at the expense of Colorado ratepayers, state resources and our long-term climate targets.

Data centers are particularly power-intensive and are causing a massive increase in projected new demand for electricity throughout the country. Xcel Energy estimates new data centers could lead to more than a 30% increase in the utility’s peak power demand by 2035. Without accountability, new data centers will lead to construction of new gas-burning power plants and the delay of coal plant retirements. This approach risks saddling Coloradans with millions in unnecessary costs while jeopardizing state climate objectives and the burgeoning economic environment our state has worked tirelessly to create.

Colorado has made significant progress toward its climate goals, including ambitious targets to reduce greenhouse gas emissions. Unregulated data center growth, paired with expanded fossil-fuel generation, risks undermining that progress. Aligning data center development with our state’s clean energy trajectory is an economic imperative because our long-term climate and economic goals are inextricably tied. Future prosperity depends on building a resilient, affordable and sustainable energy system.

As electricity demand rises sharply, we are also concerned the costs of new energy infrastructure could be shifted to ratepayers and small businesses through higher utility bills.

Data centers need to be accountable to the cost of the energy and infrastructure they rely on. Ensuring this will help prevent cost-shifting, protect ratepayers and create more accurate market signals around energy demand. Clear signals like this are what encourages continued investment in clean energy and community-based generation, the most cost-effective and rapidly deployable energy solutions.

By establishing clear expectations for accountability and aligning development with our long-term climate goals, we can ensure that data center growth benefits all Coloradans. State leaders must protect Coloradans from higher energy bills, increased pollution and other adverse impacts by passing the common-sense guardrails for new data center development in SB26-102.

Colorado has worked too hard to build a resilient economy and a credible climate strategy to let both be undermined. The business community is right to call for long-term prosperity and well-being. But achieving that goal requires more than ambition. It requires accountability.

Joe Antus is executive director of Signal Tech Coalition, a collection of business, technology and finance leaders across Colorado dedicated to advocating for bold economic climate policy to benefit both people and the planet.