- Arizona, Utah, Wyoming are securing AI data centers with reliable natural gas power
- Natural gas heats nearly 7 in 10 Colorado homes, contributes hundreds of millions annually to schools
WASHINGTON – Consumer Energy Alliance (CEA), the leading energy and environmental advocate for families and businesses, today released “Powering Progress: How Natural Gas Fuels Colorado’s Communities,” a report highlighting natural gas’s vital role in keeping Colorado’s economy attractive, creating jobs, funding schools and heating homes and businesses.
The analysis highlights the multiple different ways natural gas contributes to the state. Natural gas provides a quarter of the state’s energy, heats 7 out of 10 homes and contributes to the 3% of state GDP that oil and natural gas generate annually. At the same time, natural gas has helped Colorado reduce emissions by nearly 60% from 2011 to 2020.
Colorado, with significant natural gas reserves, is ideally positioned to take part in the AI data center and advanced manufacturing boom. However, Colorado appears to be losing ground to neighboring states like Arizona, Utah, and Wyoming, which have energy policies focused on delivering affordable, reliable energy and which prioritize the ability to build natural gas and other energy infrastructure to meet future needs. The analysis warns that proposed restrictions like Colorado’s SB24-159, which would prohibit new oil and gas well permitting by 2030, could severely impact the state’s competitiveness.
“While neighboring states are moving fast to attract billions in AI and advanced manufacturing investments, Colorado risks being left behind if the state restricts access to a reliable, affordable energy source that has helped power the state’s economic and environmental progress,” CEA Southwest Executive Director Matthew Gonzales said. “Natural gas heats 7 out of 10 Colorado homes, which is crucial, but it also funds schools, supports rural communities, and provides the reliable baseload power that high-tech industries demand. We can’t afford to handicap ourselves in an economic development race that can lock in decades of jobs and income.”
Taxes on natural gas production make up a significant share of public school funding paid out by the State Land Board, which totaled $182 million in the 2024 fiscal year and on average has ranged from $160 million to $183 million annually over the last five years.
The report highlights natural gas’s crucial role in keeping things affordable for vulnerable populations, with nearly 37% of Coloradans facing income constraints that make energy affordability critical. Colorado’s rural communities depend heavily on natural gas development for long-term economic stability, while the industry’s property and severance tax revenue funds schools, healthcare, emergency services, and infrastructure.
CEA urges Colorado policymakers to support investment in cleaner natural gas infrastructure, protect revenue streams benefiting schools and local governments, and preserve consumers’ freedom to choose the energy that meets their needs affordably and reliably.
To download the report, click HERE.
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About Consumer Energy Alliance
Consumer Energy Alliance (CEA) is the trusted voice advocating for affordable, reliable, and cleaner energy solutions that benefit all Americans. Representing families, farmers, small businesses, distributors, producers, and manufacturers, CEA champions sensible, balanced policies that support economic growth and environmental resiliency; and ensures families and businesses are a vocal part of the nation’s energy dialogue. Every day, we work to inspire practical, responsible solutions that meet America’s energy needs while protecting the environment for generations to come.
Contact:
Bryson Hull
(202) 657-2855
bhull@consumerenergyalliance.org