Denver City Council passes one-year data center moratorium
The Denver City Council unanimously passed a one-year moratorium on new data center construction, with members apologizing for previously allowing a CoreSite facility. The moratorium enables the city to draft new regulations addressing energy use, water consumption, noise, and placement, which were major concerns regarding the CoreSite project.
The Denver City Council unanimously enacted a one-year moratorium on new data center construction, prompted by widespread regret over the approval of a large CoreSite facility in the Globeville-Elyria-Swansea neighborhood. Council members, including Sarah Parady, Flor Alvidrez, and President Amanda Sandoval, publicly apologized for their past decisions, particularly concerning the CoreSite DE3 facility's location near the Tepeyac Health Center, which serves patients with respiratory illnesses, and its planned 14 backup diesel generators.
The moratorium temporarily halts new zoning permits and site development plans for data centers while the city develops specific regulations for energy use, water consumption, noise, and placement, as Denver currently lacks such rules. The CoreSite project, located at 49th and Race streets, required no council vote for industrial zoning but relied on a city easement relinquishment and a $9 million tax incentive request. While Mayor Mike Johnston signed the easement ordinance, the tax incentive, sought by his Denver Economic Development and Opportunity office, was ultimately postponed twice and never approved due to council concerns over water use and environmental impact.
Council member Paul Kashmann, a co-sponsor of the moratorium, highlighted the significant water demands of CoreSite's new facility, projected to use 230,000 gallons per day, far exceeding existing data centers. The moratorium will not stop CoreSite's first building, already under construction, but it will block two additional planned buildings on the same campus. CoreSite stated the moratorium is not about them and that their generators meet state air quality standards. Alfonso Espino of the Globeville-Elyria-Swansea Coalition views the moratorium as a necessary first step, emphasizing the need for strong regulations. The article also mentions Jefferson County's preemptive extension of its data center moratorium and Aurora's approval of a tax rebate for a QTS facility, providing regional context.