After nearly a year of debate, Colorado lawmakers failed to pass either of two competing data center bills, leaving the fast-growing industry to continue expanding under existing rules.

That means the state will move forward without new standards governing energy use, water demand, or where large data centers can be built, even as communities and consumer advocates warn about rising utility bills and increasing strain on local resources, according to Colorado Newsline.

One proposal, Senate Bill 26-102, was backed by environmental and consumer advocates. It would have pushed data centers to source up to 100% of their electricity from renewable energy while adding protections for utility customers and nearby communities.

Sen. Cathy Kipp asked a Senate committee Monday to postpone the bill indefinitely after a compromise failed to gain enough support.

A second proposal, House Bill 26-1030, was backed by tech industry groups and focused on offering a full sales-and-use tax exemption for data center development while requiring less aggressive renewable energy standards.

That measure was also postponed indefinitely after failing to advance out of committee.

The issue attracted unusual attention at the Capitol. According to Secretary of State data, 196 lobbyists representing 150 clients took positions on one or both bills, making them among the most heavily lobbied proposals of the legislative session.

The stakes are high because data centers consume enormous amounts of electricity and water, and much of the current construction boom is tied to artificial intelligence and cloud computing.

For everyday Coloradans, the debate raises a practical question: Who pays when energy demand spikes?

Without additional guardrails, communities could face strained water supplies, expanded industrial development, and higher utility costs that eventually appear in household bills.

That is why the issue extends beyond the tech industry. It also affects affordability, local planning, and public health.

The collapse of both bills delays efforts to shape growth in a cleaner, more community-focused way. Rather than establishing rules that could have guided development toward renewable energy and stronger public protections, lawmakers left the state with a major policy gap.

Public concern appears to be significant. Kipp pointed to polling commissioned for Conservation Colorado that found 91% of Coloradans support policies protecting ratepayers, communities, and natural resources from unrestricted data center growth.

For now, however, the fight is not over.

Kipp said lawmakers plan to revisit the issue next year after this year's compromise effort fell apart.

That proposed compromise would have tied limited tax incentives to standards on siting, energy use, and water demand, with the goal of allowing development while ensuring projects benefited Colorado residents.

But with the session nearly over, lawmakers were unwilling to accept a last-minute rewrite of the bill.

Residents concerned about local impacts still have ways to get involved. They can track proposed projects in their communities, follow utility and zoning hearings, and contact state lawmakers to advocate for protections for ratepayers, water supplies, and neighborhood health.

State Senator Lisa Cutter summarized the outcome this way: "So now no one gets incentives for data centers, but we also don't have any guardrails for data centers," which she called "really, really troubling."

Get TCD's free newsletters for easy tips, smart advice, and a chance to earn $5,000 toward home upgrades. To see more stories like this one, change your Google preferences here.