City welcomes independent review of data center policies by Romer Institute

The City of Colorado Springs welcomed the release Tuesday of an independent report by the Romer Institute of Evidence-based Policy examining the City's existing regulatory structure in place for data center development, as well as approaches taken by comparable municipalities. Requested earlier this year by Mayor Yemi Mobolade, the report provides an outside and data-driven assessment of where the City's current policies are working well, where gaps exist and what additional measures could help guide responsible data center development.

The independent review comes as cities across the country grapple with the rapid growth of data centers and questions surrounding infrastructure capacity, energy and water consumption, neighborhood impacts and economic opportunity. Mayor Yemi requested the analysis to ensure Colorado Springs' approach is informed by objective research and national best practices, rather than relying solely on existing processes or assumptions.

"I welcome the Romer Institute's independent analysis and the perspective it brings to this important conversation," said Mayor Yemi Mobolade. "We requested this review because Colorado Springs deserves an honest assessment of what is working, where gaps exist, and where we can do better. We will consider these findings alongside community input and the expertise of our City and Utilities teams as we shape a thoughtful, transparent path forward. Our goal is clear: protect our neighborhoods and resources, create certainty for responsible investment, and ensure future data center development delivers real value to the people of Colorado Springs."

The Romer Institute's analysis identifies several existing advantages in developing data center regulation, particularly Colorado Springs' unique ability to manage utility-related impacts through its municipally owned utilities. Unlike many peer communities, Colorado Springs has direct local authority over utility rates and service requirements, providing additional tools to address the demands of large data center developments.

The report also recognizes protections already established by Colorado Springs Utilities, including requirements implemented in January 2026 for large electric customers with demand of 10 megawatts or more. These safeguards include long-term financial commitments and customer responsibility for certain infrastructure costs, helping protect existing utility customers from costs associated with large new developments.

At the same time, the independent review identifies opportunities to strengthen the City's existing regulatory framework. These include establishing a distinct land-use classification for data centers, evaluating thresholds for additional oversight, refining noise and water-use requirements, expanding transparency and public participation, and clarifying expectations for community investment.

In total, the report identifies 14 potential policy options for City leaders to consider. These findings will inform work already underway within the City's Planning Department to evaluate potential amendments to the Unified Development Code (UDC). The department is developing recommendations that could establish clearer data center definitions, appropriate review thresholds, more predictable approval processes, and expectations for community investment.