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Colorado Lawmakers Propose Tax Breaks for Data Centers Amid Environmental Concerns

DATA AND AI INFRASTRUCTURE

Colorado lawmakers are considering a bill that would provide data center developers a 100% exemption from state sales and use taxes for 20 years, contingent on a $250 million investment and job creation. The bill faces opposition from environmental groups concerned about energy demand and costs.

A competing bill would require developers to match energy demands with clean sources. The debate highlights Colorado's lack of tax incentives for data centers, contrasting with at least 37 other states. Proponents argue the incentives are necessary to attract investment, while opponents claim they pose environmental risks and financial burdens on residents.

Colorado Lawmakers Propose Tax Breaks for Data Centers Amid Environmental Concerns
Jan 22, 2026, 6:20 AM

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