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Economic growth

Peak Innovation Park to Receive $650 Million in Electric, Water, and Wastewater Infrastructure Upgrade

Strategic Insights

— 2 min read

Local officials inked an executive agreement with the Colorado Springs Airport to fund and build crucial electric, natural gas, water and wastewater infrastructure that will support the municipal airport and its 1,600-acre business park. This multi-billion dollar project will support long-term development and sustainable economic growth in Colorado Springs and across the Pikes Peak region.

Key Takeaways:

  • The $650 million project will build 10 new natural gas generators at a campus near the Colorado Springs Airport, supporting up to 600 megawatts of electric capacity.
  • Colorado Springs Utilities will design, construct, own, and operate a new high-voltage switching substation on airport property, with investments in substation equipment and large-scale transformers.
  • The utility will also be solely responsible for all 115 kilovolt and 230 kilovolt high-voltage transmission lines, which will be reviewed by the Southwest Power Pool beginning next April.
  • The new substation will enable Colorado Springs to meet market demands for power from companies in aerospace, defense, manufacturing, and other industries, who are considering doing business or expanding operations in the city.
  • Often considered "high power users," these companies have indicated their sites need to be fully operational within 24 to 30 months.
  • Colorado Springs Utilities staff estimated that the project would cost the average customer $126 in utility rates over the next five years, while future developers would pay up to $3,900 per home in cost recovery fees.
  • The airport's estimated investment under the agreement is about $58 million, costs that will be bankrolled by future development within the business park.
  • Utilities expects to invest $165 million into the project, funding for which was included in the agency's five-year financial plan.
  • Peak Innovation Park is about 18% developed and is home to businesses including Amazon, Northrop Grumman, The Aerospace Corporation, and Frito-Lay.
  • The site could grow by more than 560 acres in the coming years, after Colorado Springs Airport agreed in 2023 to purchase the additional land for more than $38 million.

Statistics:

  • The project will build 10 new natural gas generators, supporting up to 600 megawatts of electric capacity.
  • The new high-voltage switching substation will be designed, constructed, owned, and operated by Colorado Springs Utilities.
  • The utility will be responsible for all 115 kilovolt and 230 kilovolt high-voltage transmission lines.
  • The estimated cost of the project is $650 million.
  • The airport's estimated investment is $58 million.
  • Utilities expects to invest $165 million into the project.

Sources:

  • "Colorado Springs Utilities names contractor for major 400-megawatt natural gas project" by Breeanna Jent (The Gazette, 2025)
  • "Utilities Board supports $396 million wastewater expansion in east Colorado Springs" by Breeanna Jent (The Gazette, 2025)
  • "Peak Innovation Park is about 18% developed and is home to businesses including Amazon, Northrop Grumman, The Aerospace Corporation, and Frito-Lay" (The Gazette, 2025)
  • "Colorado Springs Airport agreed in 2023 to purchase additional land for more than $38 million" (The Gazette, 2025)

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