Colorado Grapples with Data Center Boom's Environmental Toll

Community groups raise concerns over pollution and water usage as the state competes to attract tech giants' server farms.

Apr. 13, 2026 at 3:40pm

Got story updates? Submit your updates here. ›

A highly detailed, 3D illustration of a massive, glowing data center server farm, with towering racks of blinking hardware and snaking cooling pipes, conveying the industrial scale and environmental toll of the booming data center industry.The environmental impact of Colorado's aggressive pursuit of data center investments has become a growing point of concern for local communities.Denver Today

Colorado is facing a reckoning over the environmental impact of the state's aggressive efforts to lure data centers from major tech companies. Community organizers in Denver's north side, one of the nation's most polluted ZIP codes, are voicing concerns about the latest industrial building rising in their neighborhood and the data center industry's heavy water usage and emissions.

Why it matters

As states across the country offer lucrative tax incentives and other subsidies to attract data centers, Colorado's push to become a hub for the booming industry is raising questions about the tradeoffs between economic development and environmental justice. Residents in impacted communities are worried about the public health consequences of increased air and water pollution.

The details

Community organizer Alfonso Espino, who has asthma and whose younger brother also suffers from the condition, is leading the charge against the latest data center project in his north Denver neighborhood. The area already ranks among the nation's most polluted ZIP codes. Espino and other local activists argue the energy-intensive data centers will further degrade air quality and strain the region's limited water resources.

  • The latest data center project broke ground in north Denver in March 2026.
  • Colorado has aggressively courted data center investments since 2020, offering tax incentives and other subsidies.

The players

Alfonso Espino

A community organizer in north Denver who is leading opposition to a new data center project in his heavily polluted neighborhood.

Colorado Newsline

The local news outlet that originally published this investigative report on Colorado's data center boom and its environmental impacts.

Got photos? Submit your photos here. ›

What they’re saying

“I have asthma, my little brother has asthma, and we're concerned about the air quality getting worse.”

— Alfonso Espino, Community Organizer

What’s next

Colorado lawmakers are expected to consider new regulations on data center water usage and emissions in the upcoming legislative session.

The takeaway

As the data center industry continues its rapid expansion, Colorado's experience highlights the tensions between economic development and environmental justice that many communities are grappling with. Policymakers will need to carefully balance the benefits of attracting tech investment with mitigating the public health impacts on vulnerable populations.