Commissioners weigh infrastructure limits as Douglas County begins discussing rules for data centers and energy storage developments

The Douglas County Commission initiated discussions on May 6, 2026, concerning proposed regulations for data centers, digital asset retrieval systems, and battery energy storage systems, addressing the two-year-long effort to clarify zoning rules for these undefined land uses. County staff presented research and recommendations, suggesting data centers and cryptocurrency mining be allowed in industrial-zoned areas, and battery storage in utility-scale districts, both subject to conditional use permits. However, Commissioners Karen Willey and Patrick Kelly expressed significant doubts about the county's rural infrastructure, particularly its water and electricity capacity, being able to support the substantial demands of large-scale data centers. Commissioner Kelly questioned the practicality of legislating for developments he believes are not feasible within current county capabilities. Commissioners also explored the legal implications of an outright ban versus simply not listing these uses as permitted, with Commissioner Erica Anderson requesting legal counsel on the permissibility of such a ban. Ultimately, staff were instructed to secure additional legal guidance before proceeding with data center and cryptocurrency mining discussions. The Commission opted to separate the regulatory processes, prioritizing battery energy storage due to its perceived simpler integration and existing regulatory frameworks from solar developments. More detailed conversations about data centers will be postponed until the county's broader zoning diagnostic review concludes. Community members present voiced environmental concerns and advocated for a moratorium, though the county currently enforces a "de facto pause" on applications for these developments until regulations are established.