Denver’s pause on data centers could last up to a year

The Denver City Council is debating a proposed moratorium that would pause new data center construction for up to a year. This proposal, championed by council members Paul Kashmann and Darrell Watson and backed by Mayor Mike Johnston, aims to allow the city to establish new requirements for these energy- and water-intensive facilities. The moratorium would lead to the formation of a working group comprising city officials, experts, utility companies, developers, and community members to develop updated regulations. The pause would not impact data centers already permitted or under construction, such as a 600,000-square-foot campus in Elyria-Swansea by CoreSite. The city's Office of Climate Action, Sustainability and Resiliency indicates Denver currently has five sites exclusively for data centers and 46 with partial use. Potential outcomes of the moratorium include updated zoning, guidance for cooling systems, energy use, and renewable energy requirements. While Councilmember Amanda Sawyer cautioned against an outright ban, Councilmember Sarah Parady urged the city to fully consider the environmental impacts and not rule out the possibility of a ban. The proposal unanimously passed a council committee and is set for a full council vote and public hearing, potentially on May 18. This local effort coincides with state lawmakers debating dueling data center bills, one focused on renewable energy mandates and another on sales tax exemptions for projects meeting certain labor and environmental standards, indicating broader public demand for stricter protections.