Colorado Springs: City welcomes independent review of data center policies by Romer Institute

~ Colorado Springs has received an independent review of its regulations for data center development, with the report identifying existing protections and potential changes to the city's land-use rules.

The Romer Institute of Evidence-based Policy prepared the analysis at the request of Mayor Yemi Mobolade earlier this year. The city said the review examines its current regulatory structure and approaches used by comparable municipalities.

The report identifies the city's municipally owned utilities as an advantage, giving local officials direct authority over utility rates and service requirements. It also notes protections Colorado Springs Utilities implemented in January 2026 for large electric customers with demand of at least 10 megawatts. Those measures include long-term financial commitments and requiring customers to cover certain infrastructure costs, according to the city.

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The review outlines areas for possible improvement, including creating a separate land-use classification for data centers, considering thresholds for additional oversight, refining noise and water-use requirements, and expanding transparency and public participation. It also recommends clarifying expectations for community investment.

In total, the report presents 14 potential policy options for city leaders to consider. The findings will inform work by the city's Planning Department on possible amendments to the Unified Development Code, including clearer definitions, review thresholds, approval processes and community-investment expectations.

Mobolade said the city would consider the findings alongside community input and the expertise of city staff and Colorado Springs Utilities. He said the goal was to protect neighborhoods and resources, provide certainty for responsible investment and ensure future development benefits residents.

The city said the review was intended to provide an objective assessment as communities across the country weigh data centers' infrastructure demands, energy and water use, neighborhood effects and economic opportunities.

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