Loveland City Council backs pause on large data centers

The Loveland City Council is pursuing a temporary moratorium on large data center developments after a study session revealed significant public opposition and concerns. Council members agreed to "pump the brakes" on potential projects to thoroughly study the implications, with Councilor Zeke Cortez emphasizing the need to learn from other municipalities' experiences. Residents voiced worries about high energy consumption and the impact of AI facilities.

Acting Deputy City Manager Julia Holland clarified that no data center applications are currently pending in Loveland and no non-disclosure agreements with developers exist. She highlighted the city's authority over zoning, land use, external impacts like light and noise, and utility demands in conjunction with Platte River Power Authority. Dr. Kyri Baker, a University of Colorado professor, underscored energy use as a primary concern, noting that a single 70-megawatt data center could consume 37% of Loveland's peak electricity demand.

Loveland Development Services Director Bob Paulsen pointed out that the city's development code is outdated and currently permits large-scale data centers "by right" in six zoning districts, circumventing formal council review. He proposed amending the code to restrict data centers to specific zones or subject them to conditional use review. Sharon Israel, director of Loveland Utilities, explained existing protections for large utility customers, including developer responsibility for infrastructure costs, but acknowledged policy gaps like the absence of an industrial utility customer class.

Ultimately, the City Council decided to direct staff to prepare a moratorium resolution for formal consideration on September 15. The proposed duration of at least six months, with potential for extension, will allow for further study sessions on development, economic, and utility impacts to inform permanent regulatory recommendations.