Weld County officials are hustling to get ahead of a potential data-center wave, as developers eye big swaths of land near Greeley and Windsor for massive AI computing hubs. County planners have drafted a zoning overhaul that would formally define “data centers” and spell out where they can go, and commissioners are on track for a final vote in early April. On the table is a classic local-government tradeoff: enticing property-tax revenue and construction work versus worries about round-the-clock noise, huge power demand, and extra strain on already stressed water systems.
What the county would allow
Under draft Ordinance 2026-01, Weld County would create a definition for “data centers” and allow them in industrial zoning districts through an administrative Site Plan Review. In agricultural zones, however, they would only be permitted under a Use by Special Review that requires a hearing before the Board of County Commissioners, according to Weld County. The proposed text lays out a working definition that includes not only the primary buildings but also cooling tanks, security structures and backup power systems. It also includes detailed language about onsite backup power capacity in the draft ordinance from Weld County. County staff says the new rules would apply only in unincorporated Weld County, outside city and town limits.
Why the county is moving now
The planning director told reporters the county is already seeing serious interest from would-be operators, saying “we have quite a few inquiries coming in,” as reported by The Denver Post. The Post also noted that staff wants future projects to prove they have secured enough power and water before any shovels hit dirt, a requirement meant to head off later battles over who pays for utility expansions. That combination of developer pressure and infrastructure questions prompted commissioners to slow the code update so they can lock in clearer guardrails before the first mega-project lands.
A major purchase raised the stakes
The issue stopped being hypothetical late last year, when a company tied to GlobalAI snapped up the former Carestream/Kodak industrial campus near Windsor, a 438-acre site with large existing buildings that developers say could be turned into AI-ready space. That deal, along with other out-of-state moves, has put Weld County squarely on the radar for data-center players hunting for cheaper land with industrial infrastructure already in place. KUNC reported the purchase and the developer’s stated plans.
Power, water and the utility calculus
Utilities and regional planners caution that sprawling computing campuses come with costly choices about who covers new substations, transmission upgrades and additional water treatment capacity. Poudre Valley REA, which serves parts of Weld, Larimer and Boulder counties, is a key player in interconnection talks and notes that large customers typically help pay for the required grid improvements. The City of Greeley, for its part, has been lining up raw-water tools, including a Primary Employer Water Bank, to make industrial-scale water supplies available to major employers, the city says. In other words, if the servers come, someone has to foot the utility bill.
State stakes: tax breaks versus guardrails
At the Capitol, state lawmakers are debating two very different approaches that could shape how local governments respond. According to the Colorado General Assembly, House Bill 26-1030 would create a Colorado data-center authority and offer long-term sales and use tax exemptions for certified projects that meet investment, labor and water-stewardship benchmarks. A separate proposal, Senate Bill 26-102, described by the Colorado General Assembly, would classify very large facilities as “large-load” projects, require long-term utility contracts and detailed electricity and water reporting, and push operators toward full renewable-energy matching by 2031. Cities such as Denver have signaled they want breathing room to study the impacts and have considered temporary pauses on new data centers while they redo their own rules, adding another wrinkle to the statewide fight over how fast to welcome this industry.
The Weld County Board of County Commissioners continued the final reading of the ordinance to Monday, April 6, at 9 a.m. in the Centennial Hearing Room at 1150 O St. in Greeley, giving staff more time to analyze potential impacts, gather public input and fine-tune the code, the county says. Officials are urging residents to review the draft ordinance and send in questions through the county’s online comment form before the hearing. The decision will largely determine whether Weld opts for a more permissive, administratively driven path for data-center approvals or a stricter, conditional approach that forces big projects to prove their power and water readiness up front…