State legislation may provide additional incentives for an AI data center anticipated to be constructed in Weld County as early as this year. County officials say water limitations will not be an issue.
The Colorado House of Representatives is considering House Bill 1030, which would provide data center operators with a full state sales tax exemption for 20 years. This data center development program would be overseen by the Colorado Data Center Development Authority, which would also be established by the bill’s passage.
Data centers are specialized sites that act as a primary support for internet services by facilitating cloud computing, artificial intelligence and digital services like streaming and email. Data centers provide support for everything from 911 geolocation services and banking records and are the backbone of the current economy, according to Dan Diorio, vice president of state policy for the Data Center Coalition.
“Our hope is that this bill will help open up Colorado for strong data center development and ensure that Colorado doesn’t get left behind,” Diorio said. “Colorado has a significant amount of resources available that should make it a strong data center market. We have access to affordable, clean and reliable energy. We have strong land availability, and we have access to a skilled workforce.”
This bill may come at a timely moment for Weld County, as Global AI recently purchased 438 acres from Martin Lind, CEO of Water Valley and the developer behind the Catalyst and Cascadia projects that some seek to “freeze” in an upcoming special election.
Weld County Planning Director David Eisenbraun said Global AI is in the very early stages of developing an AI-powered data center on the former Carestream Health site at 2000 Howard Smith Avenue W, between Windsor and Greeley. The location was recently the subject of contention between the two entities during the approval of Greeley’s three-mile plan.
“Data centers present an important opportunity for Weld County to thoughtfully diversify our economic and fiscal base. Oil and gas remain a strong foundation for the county, but it is inherently cyclical,” Eisenbraun said. “Industries like data centers can help broaden our long-term revenue portfolio by introducing additional, more stable property-tax-based funding sources that support core county services and infrastructure over time.”
To qualify for the incentive, data center operators would have commit a minimum of $250 million in data center investments within five years and agree to hire full-time employees within two years of approval. They’d also have to agree to water stewardship strategies and energy efficiency standards.
Water will be a critical consideration as Global AI’s development progresses, according to Eisenbraun, and will be analyzed through a formal site plan and permitting process. In conversations between the county and Global AI, company representatives said their data centers use a liquid-cooling system that recycles water used to cool the machines, resulting in minimal annual water loss compared to conventional data centers and water usage that is comparable to a single-family home.
House Majority Leader Monica Duran, who sponsored the bill, said that in addition to bringing that infrastructure to Colorado, data centers would also provide an estimated 1,500 construction jobs and 100 permanent jobs at each facility. Eisenbraun estimated that Global AI could hire up to 100 employees once the facility opens, but the current estimate is around 40 to 60.
“This bill is about something very real: jobs, investment, and a stable future for our residents,” Weld County Commissioner Scott James said in a news release. “Data centers carry major potential for regions that have been hit hardest by economic transition, job loss and decades of underinvestment. House Bill 1030 keeps Colorado competitive so that we’re able to attract data center investment that can strengthen rural economies and communities.”
The bill, which is also sponsored by Rep. Alex Valdez and Sen. Kyle Mullica, both Democrats, is set to go before the House Energy and Environment Committee on Feb. 12.
Global AI has initiated demolition permits with the county to clear interior portions of the site in preparation for potential future data halls. Though they have yet to submit formal site plan applications, they anticipate having at least a portion of the data center operational by the end of this year.
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