Denver stops new data centers for 12 months
Denver City Council unanimously voted to impose a one-year moratorium on new data center permits and site development plan applications, effective May 21. This pause aims to allow the city to develop comprehensive regulations addressing community concerns regarding data center impacts. While existing projects like CoreSite's DE3 facility are unaffected, the company's future sites will be subject to new policies developed by an upcoming working group.
The Denver City Council has unanimously voted to enact a one-year moratorium on permits and site development plan applications for new data centers. The measure, which takes effect on May 21, aims to provide the City and County of Denver with time to establish comprehensive regulations for data center development, which currently lacks specific oversight within the city's zoning code. A working group will be formed to assess impacts and craft policy recommendations.
This decision comes amidst growing community pushback over concerns about data centers' high energy consumption, water usage, and potential noise pollution. Residents in Denver's Globeville Elyria-Swansea neighborhood had previously opposed the construction of CoreSite's DE3 facility, citing environmental concerns and inadequate public notification. Denver City Council President Amanda Sandoval publicly apologized for not intervening when the CoreSite project sought tax incentives.
Industry representatives, including CoreSite, acknowledge the need for responsible growth while emphasizing data centers' role as critical infrastructure. However, Daniel Riley, Vice President of the Metro Denver Economic Development Corp., expressed concern that the moratorium sends a negative message to the business community, despite acknowledging legitimate policy questions regarding resource use. Labor proponents, represented by Sergio Cordova of Denver Pipefitters Local 208, highlighted the substantial employment opportunities generated by data center construction and ongoing operations. The moratorium will not affect CoreSite's currently permitted DE3 facility, but future CoreSite projects in Denver will be subject to any new regulations.