Why It Matters
Data centers consume vast amounts of electricity and water—resources Colorado faces growing pressure to manage carefully as the state confronts drought, wildfire risk, and competing demands from agriculture and municipalities. Governor Jared Polis’s public defense of the industry signals a willingness to embrace data infrastructure even as his administration grapples with the state’s complex energy transition and environmental constraints.
What Happened
Speaking at the Aspen Ideas Festival, Polis articulated conditions under which Colorado should welcome data centers. The governor, who leaves office in January due to term limits after nearly eight years in power, framed the debate as one that conflates opposition to artificial intelligence with skepticism toward the physical infrastructure required to run it.
Polis said he supports data center development provided operators can demonstrate the facilities will lower utility costs and align with the state’s water management priorities. “Of course, there needs to be data centers. As long as you can show me it’s going to reduce our utility rates and be consistent with our water use, then absolutely we want them here,” he stated.
The governor’s stance reflects a broader energy strategy that has shifted significantly during his tenure. Colorado’s coal dependency has plummeted—from 60 percent of the state’s electricity generation in 2014 to 27 percent a decade later—while renewable capacity has expanded dramatically. Natural gas remains a dominant fuel source in the state’s energy mix.
Polis also touched on wildfire management during his remarks, referencing the three firefighters killed while battling a blaze three hours west of Aspen on the Colorado-Utah border. He emphasized that contemporary land stewardship requires departure from past practices, stating: “The way we did things 50 years ago simply won’t lead to the same positive outcomes of diverse wildlife and healthy landscapes that make Colorado special unless we are very thoughtful about how we do this for the future.” The state has invested in its own aerial firefighting fleet to bolster suppression capabilities.
By the Numbers
8 years — Polis’s tenure as Colorado governor
60% — Coal’s share of Colorado electricity generation in 2014
27% — Coal’s share of Colorado electricity generation in 2024
35 miles per hour — Wind gusts recorded in Aspen during recent wildfire
October 1 — Deadline for seven Colorado River-dependent states to finalize new operating rules
Zoom Out
Colorado’s energy transition reflects a national pattern: states are retiring coal plants while expanding wind and solar capacity, even as natural gas continues to underpin the grid. The rapid growth of data centers across the West has created novel policy tensions between technology companies seeking reliable power, environmental advocates concerned about resource depletion, and state officials balancing economic development with sustainability commitments.
Polis’s earlier career included backing ballot measures to restrict drilling near homes—a position he adjusted once in office by pursuing sweeping regulatory reforms rather than outright drilling bans. His current framing of data centers as potentially beneficial if managed properly follows a similar pragmatic pattern.
Water scarcity looms large across the Colorado River Basin, where a three-decade megadrought has strained supplies. Seven states that depend on the river face an October 1 deadline to agree on new operating rules, making water-efficient development a critical policy consideration for any major infrastructure project in Colorado.
What’s Next
Polis will leave office at year’s end, leaving his successor to navigate ongoing tensions between data center expansion, renewable energy deployment, and water availability. The October 1 Colorado River deadline will demand Colorado’s participation in regional negotiations that could reshape how the state allocates water to energy production, agriculture, and municipalities. Data center permitting decisions at the local and state level will test whether operators can meet the governor’s stated conditions—reducing utility rates while respecting water constraints.