Senate committee postpones data-center regulation bill after stakeholder compromises fall short

Senate Bill 102, a comprehensive data-center regulation proposal, was laid over indefinitely by the Senate Transportation & Energy Committee after the sponsor said stakeholders remained divided.

Senator Kipp, who led the bills efforts, described a strike-below draft that would have required accountability and transparency from data-center operators, reporting on water and energy use, limits on backup diesel generators, community-impact analyses and community benefit agreements, and a narrowly tailored competitive tax incentive meant to bring projects to Colorado with guardrails. She said the bill was the product of year-long stakeholder engagement but acknowledged that certain elements, particularly the incentive structure, remained controversial.

"We tried to put in a variety of levels so that it wasn't a one-size-fits-all approach," Senator Kipp said, adding that communities were concerned about water, air quality, farmland and electricity bills. After committee discussion and several members praising the sponsors work, Senator Ball moved at the sponsors request to postpone the bill indefinitely; the motion passed unanimously.

Senator Kipp said she intends to bring the measure back next session after further negotiation with stakeholders.