Walsenburg P&Z seeks to get ahead of data center juggernaut
The Walsenburg Planning and Zoning Commission is developing an ordinance to deter large utility users, including data centers, due to concerns about water and electricity consumption. This action is spurred by a proposed 15-megawatt data center by BlueSky AI in neighboring Huerfano County. The commission aims to make it difficult for such developments to gain approval.
The Walsenburg Planning and Zoning (P&Z) Commission in Colorado is proactively developing an ordinance to deter large-scale developments, including data centers, from establishing within the city. P&Z Board Member Stacy Decker initiated the proposal, aiming to create such stringent planning approval requirements that data center developers would opt to build elsewhere. His motivation stems from a September 2025 announcement by Utah-based BlueSky AI, which reportedly put a 36-acre parcel in neighboring Huerfano County under contract for a 15-megawatt data center.
While the BlueSky AI project has not yet materialized or contacted Huerfano County's Land Use Office, Walsenburg officials are concerned about the substantial resource demands, particularly electricity and water, that such facilities require. Given Huerfano County's "high plains desert" environment and ongoing drought, water conservation is a primary concern. Walsenburg City Administrator Jerry Pacheco suggested broadening the ordinance beyond just data centers to encompass any large-format utility users, citing a similar past proposal from EcoTech Biofuels.
During their June 10 meeting, P&Z commissioners unanimously passed a motion directing City Administrator Pacheco and staff to draft an ordinance. This ordinance will mandate an "extreme level of review and consideration" for any proposals demanding high amounts of utility resources, effectively imposing strict regulatory hurdles on high-load developments.