AI data center could come to Colorado Springs

COLORADO SPRINGS, Colo. (KRDO) - A new data center is being proposed to fill what used to be a chip manufacturer's plant off of Garden of the Gods Road.

The center, proposed by Raeden, a real estate data center company, would be located at 1565 High Tech Way. It's been given the moniker "Project Taurus" as part of the development proposal.

However, word of the proposal has been met with fierce backlash by neighbors adjacent to the proposed center. Residents are calling for transparency and sustainable solutions to mitigate potential disruptions.

The development focuses on a "brownfield" approach, which involves retrofitting the existing structure to utilize its established electrical infrastructure, according to Raeden.

Jason Green, co-founder and chief operating officer of Raeden, said this method allows the company to reach the market faster than building a new facility from the ground up. It was also part of why Raeden looked to Colorado Springs.

The facility is expected to use between 50 and 55 megawatts of power, according to Green.

Scott Shirola, manager of pricing and rates for Colorado Springs Utilities (CSU), said the utility has established specific protocols for such high-demand projects.

"We've really taken some proactive steps over the last several years in terms of studying and then working with our utilities board and City Council and getting these processes, the study process and our large load electric rate schedule in place to really ensure and protect the rest of our customers from any cost shift back onto them," Scott Shirola said.

Under the current rate schedule, large load customers requiring 10 megawatts or more must sign a 10-year contract, Shirola explained. He said these customers are also required to provide 36 months of collateral to protect the utility from early exits. Shirola said that these customers are responsible for the costs of any necessary infrastructure or transmission system modifications.

Green says the first phase of the project is projected to create 60 to 100 jobs. Green noted that these positions would include engineering, operations and security roles. He also said that they plan to hire all local residents.

"One of the reasons why Colorado Springs is that the confluence of all of the military associations and organizations, as well as the university systems, means that there's a lot of really highly trained, very smart and intelligent people locally," Green said.

Despite the job projections, some neighbors remain unconvinced of the project's local necessity. Bobbie Sue Neiffer, a resident who has lived in the nearby neighborhood since 2021, pointed out how homeowners were recently asked to be cautious with their own resource consumption by CSU.

"So we're all thinking about kind of the sacrifices we're going to be making. And then to get this at the same time, thinking like, okay, this new AI data center is going to be taking more resources. And I think the big feeling is like, for what?" Neiffer said.

Green estimated daily water use at 2.5 to five gallons for staff needs, adding that the site's previous chip fabrication use required millions of gallons per day. To cool the equipment, Green said the facility will use a closed-loop system that reuses water.

"We run what a closed-loop cooling system is. So, we don't need any ambient water because we're not exposing the water we use for cooling to the air. So if you don't expose liquid to air, it doesn't evaporate, then you don't need to replace it with anything else," Green said.

He said he did not know how much water the closed-loop cooling system would need initially. Green said it depends on who ends up at the data center, out of their many AI company clients.

James Patton, a neighbor who moved to the area in 2021, questioned the broader water footprint of the energy required for the site.

"What's not mentioned in that is the incidental water usage, based on 60% of our energy comes from coal and natural gas. Those both require water to develop power," Patton said.

Green essentially said that it is the water that CSU uses to generate energy, not Raeden.

"Colorado Springs utility is the generator, the provider of energy. That energy that they deliver to us is independent of our water use," said Green.

Patton also raised heat concerns, citing a recent Cambridge study that showed data centers increase temperature, noting the environmental impact of data centers. We have included the study below.

"We just came off the hottest winter and driest winter ever for Colorado. And now we're going to throw something next to a neighborhood that's going to drive up temperatures, take away water, and increase noise levels. It just doesn't make sense," said Patton.

Green acknowledged that electrical use results in some energy dissipation, meaning extra heat.

"There is some form of heat rejection, and it goes into the air. And the reality is that any time you're generating anything of any kind, there's some type of electrical use, there's going to be some energy dissipation," Green said.

Neighbors say they are also not a fan of any potential noise pollution that comes with the data center.

"Noise obviously is the biggest problem with these closed-loop systems that they're proposing. What it requires to cool is actually big fans, right? And hundreds of large fans in order to cool that system. So those fans and you've seen it in a couple of places, including an Amazon data center. They generate a ton of noise. The noise can lead to a kind of low drum and hum throughout the entire neighborhood that leads to headaches, poor sleep issues with babies," said Patton.

Some residents say it even worries them about being able to get out and enjoy the outdoors.

"I have a small child, as do many people in this neighborhood, and we love to get outside with our children. And I definitely worried about how that [noise] would limit it of being able to enjoy our backyard. I think that, you know, besides the trail, there are other businesses nearby that could be affected as well. And I want to make sure that they understand the consequences of this data center," said Neiffer.

Green said that the company plans to install attenuated walls and screens to prevent noise from reaching the community. He claims the neighbors should not hear a thing.

A community meeting is planned for Tuesday night at 5:30 to relay information about the project and application. The city and developers plan to hold the meeting at Hyatt Place, located at 503 W. Garden of the Gods Rd. Green said he plans to attend in person to answer questions from the community.

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