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Adams County reviews data center growth, utility risks and local policy options
Summary
County staff briefed commissioners on the rapid rise of data center proposals, outlining electricity and water demands, local employment effects, and incentive structures; commissioners prioritized updating land‑use standards and asked staff to convene utilities and regional partners before legislative session.
Ben Fulton, development policy analyst for Adams County, told the Board that data center proposals have accelerated since 2021 and that Colorado counts roughly 50–60 facilities as of June 2025, most small and front‑range concentrated. Fulton said the state faces a pipeline of large proposals: "Xcel has stated it has pending applications for datacenters to require about 5.8 gigawatts of electricity," and filings estimate even larger long‑term scenarios.
Fulton described the facilities as physical campuses that house servers and supporting systems — "HVAC, backup power, cooling equipment" — and distinguished a large construction workforce from smaller, higher‑skilled operations staff once facilities are running. "For a really large hyperscale facility, it might take 1,500 construction workers to build it, but it may only have 70‑125 employees on‑site every day," he said.
On utilities, Fulton said data centers can strain local grids and spur tariff changes. He noted efficiency improvements measured by power usage effectiveness (PUE) but warned that big projects can prompt utilities and public utility commissions to demand long contracts and cost guarantees: "We want to see 15‑year contracts... If you exit early, there are going to be penalties," he said. Commissioners raised questions about whether public reporting of efficiency metrics (PUE/WUE) is required; Fulton said large operators often disclose metrics voluntarily but that reporting mandates vary.
Water and cooling drew similar scrutiny. Fulton cited researcher estimates that a 1‑megawatt data center can use about 6,700,000 gallons of water per year and that larger sites can require millions of gallons per day. He said closed‑loop cooling and other innovations can reduce consumption but emphasized the county must weigh local water availability.
Commissioners urged the county to prioritize development standards and land‑use rules in the near term, follow with legislative engagement and incentives policy, and to convene regional partners and utility companies. Commissioner Lynn said development standards and zoning should be the top priority; Commissioner Kathy noted concerns about employment, salaries, and resource protections. Staff confirmed a dedicated development standards workshop is scheduled for January 30 to dig into land‑use implications.
The county will explore an incentive matrix that links local benefits — such as local hire commitments, infrastructure contributions and prevailing‑wage requirements — to any property‑tax or fee abatements.
Next steps: staff will organize a January workshop on development standards, consider convening utility stakeholders for technical briefings, and return with recommended policy options ahead of the 2026 legislative session.
