Colorado is at an inflection point.

As lawmakers debate how to regulate data centers, which are the backbone infrastructure powering everything from cloud computing to artificial intelligence, we face a simple but consequential question: will Colorado help shape the next phase of America’s economic growth, or will we watch it happen on the sidelines?

My interest in this issue isn’t abstract or purely professional. I’m a father raising my family in Colorado. I have deep roots in the skilled trades. When policymakers talk about “infrastructure” or “development,” I hear something more human: mortgage payments, apprenticeships, school funding, and whether working families can afford to stay in the communities they love.

Data centers sit at the intersection of all of that.

There’s a tendency to view data centers as faceless industrial buildings that are energy-hungry, water-intensive, and disconnected from local benefit. If we perpetuate that image, it risks pushing Colorado toward policies that feel principled, but produce the worst possible outcome: zero jobs, zero tax base, and zero leverage to advance our clean-energy goals.

Here’s the broader economic reality: according to recent reporting by Axios, major technology companies are projected to spend $650 billion on capital expenditures this year alone, which is roughly 15% of all U.S. business investment. That number is staggering. Even more important, this spending is asset-heavy. It flows directly into construction, concrete, steel, electrical work, grid upgrades, and long-term physical infrastructure, not just software and servers.

In other words, this isn’t uncertain capital. It’s a privately funded stimulus for Colorado’s skilled trades, grid modernization, and local governments. Private capital from these large, hyper-scalers should be the engine that helps us achieve both economic success and keeps Colorado on track to reach clean energy goals. However, we must create the right policy framework to allow for success, whether incentives or requirements are put into place, to seize the opportunities they provide.

Today’s data centers are often one of the most powerful tools for economic equity when they come into a community. One of the overlooked benefits? Massive property tax revenue with no additional students added to local school districts, creating a rare surplus and allowing for underfunded or fast-growing districts to build schools, increase teacher pay, and invest in students without raising taxes on local families. For many communities, data centers become long-term anchor taxpayers that stabilize budgets for decades to come.

Some narratives suggest data centers are noisy, diesel-dominated neighbors. When, in reality, today’s facilities rely primarily on battery-based uninterruptible power systems to smooth grid demand. Backup generators exist for rare emergencies, not daily operation. In fact, industry is actively transitioning toward larger battery energy storage systems (BESS) to further reduce reliance on generators over time.

That transition matters, but it has to be grounded in physics, not aspiration alone.

We all share the goal of a cleaner grid. Colorado’s businesses are already legally bound to meet 2050 decarbonization and clear energy goals, but data centers require near-perfect reliability. Intermittent energy sources like wind and solar cannot guarantee reliability alone due to their non-continuous and weather-dependent nature. Creating mandates that require “100% renewable, 24/7” power before long-duration storage is commercially viable doesn’t accelerate the transition. It effectively functions as a ban.

There’s also a competitive reality we can’t ignore. States like Wyoming, Arizona, and Utah are actively courting this investment and winning the race. If Colorado’s regulatory or tax structure makes projects even a few percentage points more expensive, the capital investment will go elsewhere. The emissions won’t disappear, rather they’ll simply be generated across the border while Colorado forfeits jobs, tax revenue, and influence over how this infrastructure is built.

Water usage is another area where perception lags behind reality. The data center industry has already moved toward water stewardship as a standard practice. Modern data centers increasingly rely on closed-loop cooling systems that recirculate water rather than consume it. The need for legislated reporting structure and transparency makes sense, however, unless the data center has a private well, all water usage flows through a regulated meter, making it inherently measurable and transparent.  The idea that these facilities are unchecked “water hogs” reflects technology from a decade ago, not today’s standards and practices.

Finally, there’s a national context that deserves more attention: artificial intelligence (AI). AI is not a fad. It is the foundation of the next modern-day industrial revolution, with profound implications for economic competitiveness and national security. The infrastructure to support it will be built somewhere in the United States. States that establish themselves as leaders now will be nearly impossible to displace later.

I urge policymakers to take these thoughts into consideration as they negotiate legislation that will determine the trajectory of our future digital infrastructure. Colorado doesn’t have to choose between environmental stewardship and economic opportunity. We can require development to pay its own way, protect ratepayers, invest in grid modernization, and accelerate clean-energy innovation, all while welcoming private capital that strengthens our communities.

But that requires nuance. It requires collaboration. And it requires resisting the temptation to draw hard lines that feel satisfying but ultimately leave Colorado on the sidelines of its own future.

Mark Witkiewicz, based in Denver, is currently a Principal at Westside Investment Partners, Inc.