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By Bill Owens
Data centers could provide the real economic investment we need in our current budget crisis.
As someone who has had the privilege of leading the state of Colorado, I take our economic competitiveness and leadership very seriously. I fought to ensure our state was open for business — a place where entrepreneurs would want to locate, bringing jobs and investment with them. We are also a state with a long tradition of balancing growth with stewardship.
Over the decades, Colorado has experienced extraordinary growth and faced transitions that reshaped its economy and infrastructure. We are a hub for countless major industries from aerospace and energy to health care and manufacturing, driven by a talented workforce, smart policies and our own pioneering spirit. Oil and natural gas development and the growth of clean power each brought opportunity alongside challenges.
The question is not whether change will come, but whether Colorado will help shape it on its own terms or react to decisions made elsewhere. Experience taught us that the best outcomes and lasting opportunities come neither from rushing ahead without proper protections in place nor from standing still, but through thoughtful and collaborative planning. This is the opportunity I believe we have with House Bill 1030 — the chance to lead again.
In order to remain in our position at the forefront of innovation, we should take steps toward powering our future by bringing data center investment and jobs to the Centennial State. House Bill 1030 will do that by providing a targeted state (not local) sales tax exemption to attract data center development to communities hoping to benefit, but ensures that we bring them here on our terms.
Data centers operate behind the scenes as the digital engines that power our daily lives and support the key industries that fuel Colorado’s economy. Many states raced to attract data centers, hoping to benefit from the thousands of jobs, critical infrastructure and economic growth they bring with them. However, some states failed to put guardrails in place.
But in Colorado, we can learn from these early mistakes and protect consumers and our environment. We can then leverage data center development to create thousands of jobs, strengthen our grid and infrastructure, boost our renewable energy industry, support the state’s thriving tech sector, and provide needed economic investment and tax revenue for communities devastated by the loss of power generation, mines, plants and oil and gas.
Data centers support employment throughout their entire lifecycle, from initial construction to daily operations and ongoing community involvement. Developing these facilities relies on a wide range of skilled workers — including electricians, engineers, technicians and other trades. Just six new data centers could bring 1,500 construction jobs over a period of up to three years, with average annual wages exceeding $140,000 per worker. Each center also typically supports up to 100 high-paying, permanent roles. These are good jobs and real money, especially in our rural communities that are full of skilled workers just looking for an opportunity.
Data centers also make major investments in our infrastructure by funding improvements to roads, utilities, broadband networks and water systems that benefit entire regions. They play a key role in strengthening the power grid by financing new transmission upgrades and advanced energy technologies that increase reliability and capacity for everyone.
It’s no secret that data centers use a lot of energy, but House Bill 1030 provides strong, enforceable ratepayer protections that ensure rates don’t go up and data centers pay their own way. This includes making large and critical infrastructure upgrades to our aging power grid. Data centers can also power our clean energy economy. Colorado is a national leader in clean energy and is uniquely positioned to create data-center policies that help us reach our ambitious energy goals.
Finally, while data centers are the digital backbone for Colorado’s thriving tech industry on the Front Range, they can also offer a lifeline for communities on the Western Slope and Eastern Plains that have suffered from the loss of power generation and other industries. They bring stable jobs, modern infrastructure, community investments and long-term tax revenue that funds schools, public safety and other essential services.
There is a reason other states are working aggressively to attract data centers – and it’s to the tune of billions. Far from “corporate welfare,” the incentives provided to bring data centers to Colorado will be dwarfed by what they bring in in real wages, property taxes, infrastructure investments and economic growth. Nationally, data centers generated $162.7 billion in revenue for communities. Colorado currently captures only 2% of that investment and has actually lost data center jobs.
Other states moved too quickly, and Colorado can and should learn from their experiences. However, we have a history of crafting the strategic, forward-thinking policies that prove that economic strength and environmental responsibility can advance together and that other states will follow.
That same approach is needed now. The policy choices we make around data centers today will influence Colorado’s economy, workforce and infrastructure for years to come, and we don’t want to be left behind. Our state has never shied away from hard conversations about growth, resources and responsibility. Colorado can shape the digital future – if we choose to lead with House Bill 1030.
Bill Owens is a former governor of Colorado.
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