Colorado lawmakers killed competing bills aimed at regulating large data centers, meaning regulation of the facilities is left in the hands of the Colorado Public Utilities Commission for now.

The action leaves the state without new statewide rules even as those opposed to data centers warn the facilities could drive soaring electricity demand, higher utility bills and water-use worries. Industry representatives call such concerns overblown.

The Senate Transportation and Energy Committee on Monday killed SB 26-102 “Large Load Data Centers” at the request of its sponsor, Sen. Cathy Kipp, D-Fort Collins. The measure would have required operators of new large facilities to secure 100% annual renewable energy matching by 2031, cover full infrastructure costs through long-term contracts, and conduct community impact analyses.

Kipp plans to bring the bill back next year.

A separate House measure, HB 26-1030 “Data Center and Utility Modernization,” was killed four days earlier in the House Energy and Environment Committee. That bill sought to draw investment through sales-tax exemptions while requiring operators to assume full cost of service, meet job creation and wage standards and use water-efficient cooling technology.

Those opposed to data centers argued both bills fell short. They said unrestricted growth would shift massive costs to residential ratepayers, strain water supplies in a drought-prone state and undermine Colorado’s clean energy goals.

A Conservation Colorado poll of 800 likely 2026 voters conducted in April found 91% support for “common-sense rules to protect ratepayers, communities , and our natural resources like air and water from unrestricted data center growth.”

“It’s disappointing that after months of conversations on how to prioritize the needs of Colorado’s communities and our environment, that this bill (SB 26-102) will not move forward,” said Megan Kemp, legislative representative with Earthjustice’s Rocky Mountain Office.

AARP Colorado State Director Sara Schueneman said the legislation would have provided fairness for residential ratepayers and greater transparency on how data centers affect communities.

“We’re disappointed to see the legislation postponed indefinitely, and AARP Colorado will be watching how the legislature proceeds when it comes to data centers and other large-load customers carefully,” she said.

Environmental and consumer advocacy groups pledged to return in 2027. Conservation Colorado Vice President of Programs Katie Belgard said the organization will continue pushing for accountability measures that protect ratepayers and clean-energy goals.

Similar commitments came from Earthjustice, AARP Colorado and other coalition partners.

Industry representatives countered that SB 26-102’s mandates were too restrictive for facilities that require uninterrupted 24/7 power and would deter investment. They viewed HB 26-1030 as a more balanced approach that would attract economic development while including guardrails.

Xcel Energy has estimated that new large-load customers, driven largely by data centers, could increase the utility’s peak power demand by more than 40% by 2035.

To help meet that need, Sandra Hagen-Solin, director of the Data Grid Consortium, said small modular reactors represent something “very exciting” for her group and the industry. The consortium is a coalition of data center developers. She noted that many members are already exploring the technology in other states.

HB 26-1030, she said, would have allowed utilities to use small modular reactors as part of the resource mix under clean energy definitions.

Lawmakers added nuclear to the state’s statutory definition of clean energy through HB 25-1040 “Adding Nuclear Energy as a Clean Energy Resource,” signed by Gov. Jared Polis into law in March 2025 after the measure failed in two previous sessions.