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CO — Power Infrastructure Updated January 2026

Colorado

Power generation, transmission, storage, and interconnection topics relevant to data center power supply in Colorado.

WECC Natural Gas Solar Wind Storage Queue Bottlenecks Transmission Constraints

Overview

Colorado’s power infrastructure is in the middle of a coal-to-clean transition. Xcel Energy is converting coal plants to natural gas, building a massive $1.7 billion transmission backbone called Colorado’s Power Pathway, and adding thousands of megawatts of wind and solar through competitive bids. Meanwhile, the state’s interconnection queue is straining under 37 large-load requests totaling 16.1 GW — a sign that data centers and other power-hungry customers are looking to Colorado.

Generation Projects

Natural Gas

Xcel Energy is replacing coal with gas and firm dispatchable resources to keep the lights on as it retires older plants.

  • Pawnee coal-to-gas conversion (planned): The Pawnee Generating Station in Brush will switch from coal to natural gas by 2026.[1]
  • Firm dispatchable additions (planned): Xcel’s Clean Energy Plan calls for 1,300 MW of firm dispatchable resources through competitive bids between 2021 and 2030.[1]

Solar

  • Black Hollow Solar (under construction): Platte River Power Authority is building a 257 MW solar plant in Severance, with Phase 2 adding 107 MW in 2026.[3]

Wind

  • Statewide wind buildout (planned): Xcel’s Clean Energy Plan estimates 2,400 MW of wind additions in Colorado between 2021 and 2030.[1]

Transmission and Grid

Colorado’s Power Pathway is the state’s largest transmission investment in decades. It’s designed to move renewable energy from remote areas to population centers and support growing demand.

  • Colorado’s Power Pathway (under construction): Xcel Energy’s $1.7 billion project spans 550 miles of new double-circuit transmission, adds four new substations, and targets 2025–2027 completion.[4]
  • Power Pathway schedule: Segments 2 and 3 were energized in May 2025; segment 1 targets 2026; segments 4 and 5 target 2027, though local permitting delays pose schedule risks.[5]
  • San Luis Valley transmission options (planned): The Colorado PUC opened a proceeding to examine transmission expansion in the San Luis Valley to improve reliability and potentially export generation.[6]

Battery Storage

  • Black Hollow battery storage (planned): Platte River Power Authority plans a 100 MW / 400 MWh lithium iron phosphate battery system next to the Black Hollow Solar site, with construction starting in early 2026.[3]
  • Statewide storage additions (planned): Xcel’s Clean Energy Plan calls for 400 MW of energy storage between 2021 and 2030.[1]

Interconnection Queue

Colorado’s interconnection queue is under strain. Large-load customers — including data centers — are filing requests faster than the utility can process them.

  • Large-load queue size: Public Service Company of Colorado received 37 large-load interconnection requests totaling 16.1 GW over the past three years.[7]
  • Study delays: As of November 2025, 19 applicants (6.2 GW) were waiting for system impact studies and 5 applicants (1.5 GW) for facilities studies, with delays in early results a persistent concern.[7]
  • Queue transparency issues: Customers report concerns with interconnection delays, uncertain queue position, and generation constraints — factors that can influence site selection for large loads.[7]

What to Watch

  • Colorado’s Power Pathway completion: Segments 4 and 5 are scheduled for 2027, but local permitting delays could push timelines.
  • Large-load interconnection queue: With 16+ GW in pending requests, how Colorado streamlines its queue process will determine whether the state can attract data centers at scale.
  • San Luis Valley transmission proceeding: The PUC’s investigation could unlock new generation and export capacity in southern Colorado.

Sources

[1] Xcel Energy, “Colorado’s Clean Energy Plan Information Sheet (February 2023 Update),” February 2023, https://www.xcelenergy.com/staticfiles/xe-responsive/Environment/Clean%20Energy%20Plan%20Information%20Sheet%20Feb.%202023.pdf (accessed January 8, 2026).

[2] U.S. Nuclear Regulatory Commission, “Colorado | NRC Facility Locator (Operating Nuclear Power Reactors),” March 9, 2021, https://www.nrc.gov/info-finder/region-state/colorado (accessed January 8, 2026).

[3] Doug Puppel, “Northern Colorado Utility to Build 100-MW Battery System,” Engineering News-Record, April 20, 2025, https://www.enr.com/articles/60616-northern-colorado-utility-to-build-100-mw-battery-system (accessed January 8, 2026).

[4] Xcel Energy Transmission Projects, “Colorado’s Power Pathway,” n.d., https://xcelenergytransmission.com/projects/colorados-power-pathway/ (accessed January 8, 2026).

[5] Barr Engineering Co., “Colorado’s Power Pathway Project: Progress Review Report (Prepared for the Colorado Public Utilities Commission),” August 2025, https://www.dora.state.co.us/pls/efi/efi_p2_v2_demo.show_document?p_dms_document_id=1047496 (accessed January 8, 2026).

[6] Colorado Department of Regulatory Agencies, “Colorado Public Utilities Commission (PUC) Moves Forward with Investigatory Proceeding on San Luis Valley Transmission Options,” November 16, 2022, https://dora.colorado.gov/press-release/colorado-public-utilities-commission-puc-moves-forward-with-investigatory-proceeding (accessed January 8, 2026).

[7] Colorado Public Utilities Commission, “25I-0418E 60-Day Report on Large Load Outreach,” December 8, 2025, https://puc.colorado.gov/sites/puc/files/documents/25I-0418E_Large_load_outreach_60_day_report_final_CIM%20webpage%20and%20accessible%20version_0.pdf (accessed January 8, 2026).