Sterling council puts 180-day application moratorium on data centers, battery energy storage systems

The Sterling City Council unanimously approved a 180-day moratorium on processing and approving applications for data centers and battery energy storage systems (BESS) on Monday, following a motion by Ward 2 Alderman Joe Strabala-Bright and seconded by Ward 4 Alderwoman Aida Baker. The decision was prompted by numerous inquiries from BESS developers seeking to locate within city limits, including downtown areas, according to Amanda Schmidt, Sterling's building and zoning superintendent. Although no specific data center applications have been received, officials recognize the need for a regulatory framework.

City Attorney Tim Zollinger highlighted that smaller data centers might consider Sterling due to available abandoned buildings for rehabilitation, and emphasized that while water usage issues have largely been addressed by the industry, electricity consumption remains a significant concern. He stressed the urgency for a formal city ordinance to provide a framework for these developments, rather than simply rejecting applications, as zoning rules require appropriate land use.

The moratorium will allow city staff, including city planner Dustin Wolff, to develop a comprehensive plan and potential amendments to the city's comprehensive plan. A draft ordinance, detailing definitions and utility standards for data centers and BESS facilities, has already been presented to the Sterling Plan Commission. A public meeting is scheduled for September 24 at Sterling City Hall for further discussion on these matters and possible amendments. The city also aims to proactively establish its own regulations to avoid potential imposition of less desirable state-level rules.