State Senator Henriksen told Pueblo County officials at a Capital Success Group legislative update that Colorado currently lacks the incentive framework needed to reliably attract hyperscale data centers and urged local leaders to press for policy changes.

Henriksen said Colorado “does not offer competitive incentives for data center development” and pointed to environmental and energy considerations that must be addressed if the state wants projects to locate in places such as Pueblo County. ``There are some environmental challenges with data centers. There's some water use requirements for it. There's a demand on energy load,'' he said.

Why it matters: Henriksen connected data-center recruitment to Pueblo’s long-term fiscal outlook as Comanche Unit retirements approach. He described data centers as a potential source of new revenue and jobs that could help offset what he called a looming “2040 revenue cliff” tied to the Comanche settlement, and he warned that neighboring states are already winning large projects. ``The newest data center development in the country right now ... is in Cheyenne, Wyoming. And that really, that that bothers me because I think it could have been here,'' Henriksen said.

Details from the briefing: Henriksen said Pueblo has geographic and energy-infrastructure advantages that could make it competitive, including available load capacity and proximity to population corridors. He described a practical siting range for hyperscale facilities (roughly 50–60 miles from large population centers) and said Pueblo falls within that window relative to the Colorado Springs/RM metro area. But he added that the state needs an incentive program that pairs environmental protections and labor standards with economic inducements. ``If we can't be strategic and have a set of program in place with environmental protections, with labor protections, they're not going to come,'' he said.

Local response and context: Commissioners in the room agreed the prospect of new employers and tax base is important for Pueblo as Comanche units retire. Henriksen and other participants noted prior attempts to pass data-center incentives in the legislature; he said this last session’s bill made more headway than prior efforts but did not pass.

Forward look: Henriksen said he plans to continue working the issue and encouraged county leaders to coordinate on incentives and environmental safeguards so Pueblo can compete for hyperscale projects in the next 3–5 years.