Data-center law in Colorado

Subnational jurisdiction · as of 2026-09-06

Colorado's data-center permitting spine runs through county or municipal land-use approval under the state's zoning enabling statutes, a county-option building and energy code (Colorado has no single mandatory statewide building code), a Colorado Discharge Permit System permit covering construction-site discharges and an Air Pollution Prevention and Control Act permit for generator fleets, both administered by the Department of Public Health and Environment, appropriation of designated groundwater, and a Public Utilities Commission certificate of public convenience and necessity for new utility construction and grid extensions.

Colorado has enacted no data-center-specific sales and use tax exemption or siting statute as of the date shown.

The Colorado Data Center Development and Grid Modernization Act (SB 25-280, 2025) and its 2026 successor, the Colorado Data Center Workforce, Clean Energy, Grid Modernization, and Consumer and Environmental Protection Act (HB 26-1030), each would have created a 100% sales and use tax exemption program for certified data centers, and both died in committee; a separate 2026 bill imposing renewable-energy matching, ratepayer-cost, and reporting duties directly on large-load data centers, the Large-Load Data Centers bill (SB 26-102), was also postponed indefinitely.

Colorado has no environmental-review statute comparable to the California Environmental Quality Act, so review of a data-center project is confined to the specific air and water discharge permits the project separately requires.

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Instruments on record

10 instruments on record, grouped by the family of approval each one governs.

Land use

Who decides whether a data center may occupy a site, and through what approval?

County zoning (enabling statute)

In force

C.R.S. 30-28-111

Applies to both

Authorizes the county planning commission, or the board of county commissioners in a county without one, to adopt a zoning plan regulating the height, bulk, and use of buildings and the use of land for trade, industry, residence, recreation, public activities, or other purposes in unincorporated county territory. A data center proposed on unincorporated county land is zoned, conditioned, or granted a variance under this enabling authority.

The current code text does not state a single day-precise commencement date for this framework, which has been amended repeatedly since its original enactment.

Source: Full text of law

Municipal zoning (enabling statute)

In force

C.R.S. 31-23-301 et seq.

Applies to both

Empowers the governing body of a municipality to regulate the height, density, and location and use of buildings and land, including zoning for trade and industry. A data-center project sited within a municipality is zoned, conditioned, or granted a special exception under this enabling authority. The current code text does not state a single day-precise commencement date for this framework, which has been amended repeatedly since its original enactment.

Source: Full text of law

Energy and grid

What authorizations govern grid connection and onsite generation?

Certificate of public convenience and necessity for utility construction

In force

C.R.S. 40-5-101

Applies to both

Requires a public utility, including an investor-owned or municipal electric utility, to obtain a Public Utilities Commission certificate of public convenience and necessity before constructing or extending a new facility, plant, or system, and separately requires the utility's new construction to comply with local zoning. A utility's grid build-out to interconnect a large data-center load proceeds under this authority.

The current code text does not state a single day-precise commencement date for this framework, which has been amended repeatedly since its original enactment.

Source: Full text of law

Large-Load Data Centers Act (SB 26-102)

Dead / withdrawn

Colo. SB 26-102, 2026 Reg. Sess.

Applies to both

Would have defined a large-load data center as a new facility exceeding 30 megawatts of peak load, or 60 megawatts in aggregate, and required its operator, once the Public Utilities Commission determined a feasible hourly-matching percentage, to source up to 100% of the facility's annual electricity from renewable resources beginning January 1, 2031, fund grid infrastructure through a 15-year utility contract or up-front payment, and report annual electricity and water consumption to the Department of Public Health and Environment; it also would have barred a utility from offering economic development rates to a large-load data center.

The Senate Transportation and Energy Committee postponed the bill indefinitely on May 11, 2026 on a 9-0 vote.

Source: Full text of law

Water and utilities

Who commits water and sewer service, and under what assessment?

Designated groundwater appropriation

In force

C.R.S. 37-90-102 et seq.

Applies to both

Declares designated groundwater subject to appropriation for beneficial use and directs full economic development of designated groundwater resources subject to protection of vested rights. A data center drawing well water from a designated groundwater basin obtains its supply through an appropriation administered under this article by the Colorado Ground Water Commission.

The current code text does not state a single day-precise commencement date for this framework, which has been amended repeatedly since its original enactment.

Source: Full text of law

Construction

What codes and permits govern the build itself?

Colorado Discharge Permit System

In force

C.R.S. 25-8-501 et seq.

Applies to both

Bars any person from discharging a pollutant into state water from a point source without first obtaining a Colorado Discharge Permit System permit from the Water Quality Control Division. Land-disturbing construction activity for a data-center campus that discharges pollutants, including sediment-laden runoff, to state waters requires permit coverage under this authority.

The current code text does not state a single day-precise commencement date for this framework, which has been amended repeatedly since its original enactment.

Source: Full text of law

County building and energy code authorization

In force

C.R.S. 30-28-201, 30-28-211

Applies to both

Authorizes, but does not require, a board of county commissioners to adopt ordinances and a building code for the unincorporated territory of the county. A county that adopts a building code must also adopt and enforce a building energy code meeting or exceeding one of the three most recent International Energy Conservation Code versions. The current code text does not state a single day-precise commencement date for this framework, which has been amended repeatedly since its original enactment.

Source: Full text of law

Air and operations

What permits govern backup generators and ongoing emissions?

Air pollutant construction and operating permit program

In force

C.R.S. 25-7-114.2 et seq.

Applies to both

Bars any person from constructing or substantially altering a building, facility, structure, or installation that will constitute a new stationary or indirect source of air pollution without first obtaining a construction permit from the Air Pollution Control Division. A data center's backup generator fleet obtains a construction permit under this section once it meets the major or synthetic minor source thresholds defined at section 25-7-114.

The current code text does not state a single day-precise commencement date for this framework, which has been amended repeatedly since its original enactment.

Source: Full text of law

Public agreements

What fiscal agreements attach a data center to its host jurisdiction?

Colorado Data Center Development and Grid Modernization Act (SB 25-280)

Dead / withdrawn

Colo. SB 25-280, 2025 Reg. Sess.

Applies to private

Would have created a two-tier data-center certification program in the Colorado office of economic development, offering a certified operator a 100% sales and use tax exemption on qualified data-center and grid-enhancement purchases for 20 years plus negotiated utility rate incentives, conditioned on a $250 million minimum capital investment, 25 new full-time jobs, renewable-energy sourcing, water-stewardship commitments, and a utility feasibility assessment before interconnection.

The Senate Appropriations Committee laid the bill over unamended on May 8, 2025 after its amendments failed, and it did not advance further in the session.

Source: Full text of law

Colorado Data Center Workforce, Clean Energy, Grid Modernization, and Consumer and Environmental Protection Act (HB 26-1030)

Dead / withdrawn

Colo. HB 26-1030, 2026 Reg. Sess.

Applies to private

Reintroduced the prior session's data-center tax-incentive proposal under a new Colorado data center development authority, offering a certified operator a 100% state sales and use tax exemption on qualified data-center infrastructure for 20 years, extendable for 10 more, conditioned on a $250 million minimum investment, new full-time jobs meeting craft-labor and prevailing-wage requirements, energy-efficiency certification, water-stewardship commitments, and a preliminary utility interconnection consultation. The House Energy and Environment Committee postponed the bill indefinitely on May 7, 2026 on an 11-2 vote.

Source: Full text of law

Every entry cites the instrument it describes. None of it is legal advice: verify a citation before relying on it. Full sourcing: read the methodology. The rest of the record: all jurisdictions.