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Artificial intelligence and cloud computing are fueling rapid growth in data centers across the nation.

Data centers require vast amounts of water and electricity, and Colorado lawmakers are considering a measure aiming to address concerns about higher utility bills, depleted water resources and increased reliance on fossil fuels.

Jean Hardy, assistant professor of media and information at Michigan State University, said deciding where to site a data center is important.

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"You are going to build a data center in a largely agricultural community," Hardy gave as an example. "The data center moves in and all of a sudden needs to use tens of millions, if not hundreds of millions of gallons of water from local aquifers."

Senate Bill 102 would require data centers to optimize and report their water use. The measure would also require operators to tap new renewable sources like wind and solar and cover all of their energy costs, including any expansions to the electric grid. Opponents claim the bill would cut Colorado out of the AI sector and send thousands of new jobs to other states.

However, Hardy does not believe jobs created by data centers would significantly move the needle on employment.

"The types of jobs that usually come with data centers are limited and oftentimes aren’t necessarily going to people in the local communities themselves," Hardy noted. "That being said, data centers do provide a lot of construction jobs."

The measure is far different from a bill introduced in January, which would exempt data centers from paying any sales and use taxes for at least 20 years, a proposal critics called irresponsible as the state faces a budget shortfall of more than $1.5 billion.

Hardy acknowledged there are difficulties in communicating how data centers are used in everyday activities.

"Part of the issue is trying to convince people that they actually need data centers," Hardy emphasized. "Activists and community groups – who are very well-intentioned – and I’m like, ‘You’re posting about being against data centers on Instagram. Your Instagram post requires a data center.’"