Denver Mayor Proposes Moratorium On Data Center Construction
Denver Mayor Mike Johnston and some members of the city council want to press pause on the development of new data centers in the city.
The process, which is expected to take months, will give officials time to review and strengthen regulations for the developments, according to a Monday press release from the city.
The city council must approve an ordinance to launch the moratorium, and it is unclear when a vote would occur.
If the moratorium is approved, the city will review regulations around land, energy and water use, zoning and affordability for power ratepayers. It also plans to collaborate with the community, climate experts and industry leaders to create a policy governing data centers.
“This pause allows us to put clear and consistent guardrails in place while protecting our most precious resources and preserving our quality of life,” Johnston said in the release.
The city’s release acknowledges that data centers provide a necessary service, jobs and tax revenue, but it also calls out environmental concerns and neighborhood impacts.
A PwC report for the Data Center Coalition found that the industry contributed 100,350 jobs in Colorado in 2023, along with $1.3B in state and local tax contributions.
“We have a responsibility to manage their growth in our communities wisely and sustainably,” Council Member Darrell Watson said in the release.
Existing data centers and projects already permitted or under construction are exempt from the moratorium but may be subject to new guidelines in the future.
At least one data center is under construction in Denver: a 60-megawatt CoreSite facility in the Globeville-Elyria-Swansea neighborhood. The CoreSite facility has faced local backlash from neighbors concerned about water consumption, power use and potential pollution, according to 9News.
State legislators have also proposed dueling bills to regulate data centers, which could determine the industry's future in Colorado.
The state has 56 data centers, relatively few compared to top states Virginia and Texas, which have 570 and 393 facilities, respectively.
Denver isn’t the only city considering a moratorium on data centers, with proposals under consideration in Michigan, Maryland and Oklahoma, Axios reported.
