landscape photography of mountain with snow

Colorado’s Invisible Boom: Data Centers and the Future of the Rockies



Colorado is on the verge of a transformation that few residents have noticed, and fewer still are talking about. Along the Front Range, from Denver to Colorado Springs, a quiet boom in data center construction is unfolding. These unassuming buildings—windowless, sprawling, and often tucked away in industrial parks—are poised to become one of the most consequential forces shaping the state’s economy, energy grid, and environment over the next five years.

Industry analysts project nearly a 200 percent increase in data center construction across the Denver metro area. The I‑25 corridor is already being referred to as “Data Center Row,” a sign of how quickly the landscape is changing. The demand is driven by the rise of artificial intelligence, cloud computing, and the ever-expanding digital services that underpin modern life. Every email, streaming video, and algorithmic calculation requires physical servers, and Colorado is becoming a favored location to house them.

The growth comes with enormous energy implications. Xcel Energy has warned that $22 billion in new infrastructure will be needed to meet the electricity demand from these facilities. Regional electricity demand could rise by more than 55 percent by 2035, a rate of growth far higher than historical averages. This raises difficult questions about whether Colorado’s clean energy commitments can keep pace, or whether fossil fuels will be leaned on to bridge the gap. Environmental advocates caution that the state’s climate goals could be undermined if renewable energy scaling lags behind the surge in demand.

Water is another looming concern. Data centers consume vast amounts of water for cooling, and projections suggest that by 2035, facilities in Colorado could use 21,600 acre‑feet annually—roughly seven billion gallons. In a state already grappling with drought and contested water rights, this level of consumption could rival municipal use in smaller cities. Farmers and rural communities worry that industrial cooling needs will compete with irrigation, intensifying long-standing tensions over water allocation.

Supporters of the boom argue that data centers will bring high-paying jobs, expanded tax bases, and prestige to Colorado. They see the state as a rising hub of digital infrastructure, potentially rivaling Northern Virginia or Silicon Valley in importance. For local governments, the promise of new revenue streams is enticing, especially as traditional industries face volatility. Yet the benefits are not evenly distributed. Most centers cluster along the Front Range, leaving rural Colorado with fewer direct gains but shared resource burdens.

The next five years will be critical. Policymakers must decide how to balance economic opportunity with environmental responsibility. Utilities will need to accelerate renewable energy investment to meet demand sustainably. Water regulators will face mounting pressure to ensure that industrial cooling does not jeopardize agriculture or municipal supply. Communities will have to weigh the allure of tax revenue against the strain on infrastructure and natural resources.

Colorado’s invisible boom is not yet a headline story, but it is unfolding rapidly. The choices made today will determine whether the state becomes a model of sustainable digital growth or a cautionary tale of unchecked expansion. For now, the server farms rise quietly, humming in the background, while their impact on the Rockies’ future grows louder with each passing year.



Discover more from

Subscribe to get the latest posts sent to your email.

Leave a Reply

Discover more from

Subscribe now to keep reading and get access to the full archive.

Continue reading

Discover more from

Subscribe now to keep reading and get access to the full archive.

Continue reading