Commerce City joins growing list of cities pausing data center construction
Commerce City's city council approved a six-month moratorium on new data center construction, citing concerns over potential impacts on city infrastructure and resources like electricity and water. The pause will allow the city to develop specific regulations for future data center projects, as current land development codes lack such standards.
Commerce City's city council has approved a six-month moratorium on data center construction, making it the latest municipality in the Denver metro area to pause development in the rapidly growing industry. The ordinance, which passed 7-1 with Council Member Rocky Teter casting the sole 'no' vote, stems from concerns about the significant impacts data centers could have on city infrastructure, electrical usage, water supply, and telecommunications networks. The city's current land development code lacks specific regulations for such facilities, with data centers currently operating under conditional use permits.
Council Member Charles Dukes indicated that while Commerce City remains 'open for business,' the council aims to take a balanced approach, considering both the potential economic benefits and the fears associated with data center development. A recent survey by Magellan Strategies revealed widespread opposition among Colorado voters, with 82% opposing data centers in their cities or towns.
Several other Colorado municipalities and counties have also enacted moratoria or developed new regulations. Denver City Council approved a one-year moratorium in May, while Jefferson County and Larimer County extended their moratoria. Boulder County enacted a six-month pause, and Broomfield passed an 18-month moratorium. The City of Aurora, while opting against a moratorium, approved a resolution banning large-scale evaporative cooling systems, a move aimed at reducing water consumption.
Dan Diorio, executive vice president of state policy for the Data Center Coalition, advocates for the industry, highlighting benefits such as job creation, billions in economic investment, and significant tax revenue. However, State Sen. Cathy Kipp, a Fort Collins Democrat, noted that public opposition tends to increase as people learn more about data centers. Commerce City plans to use the moratorium period to establish regulations concerning noise requirements, cooling systems, and facility sizes.