Town of Hayden becomes first Routt County municipality to add data center language into development code

The Hayden Town Council in Routt County, Colorado, voted 4-1 to amend its municipal development code on August 6, making it the first municipality in the county to specifically regulate data centers. The decision followed July discussions on how to manage potential data center development and close gaps in the town's land use code.

The updated Section 10.03.05 of the development code now permits data centers in heavy industrial zones but introduces stringent limitations. These include a maximum total facility electrical demand of 50 megawatts, a cumulative gross floor area not exceeding 60,000 square feet, and a requirement for data centers to be fully enclosed. Developers must also ensure on-site power generation is the primary electricity source, supplemented by verification from the utility provider that grid capacity exists without impacting current service.

Town Manager Mathew Mendisco stated that the town's proactive approach was influenced by recent inquiries from "site selectors," Pure-Green Colorado and Toto Labs Inc., whose requirements for water and power led officials to suspect interest from data center companies. Mendisco emphasized the town's goal to prevent developers from exploiting code gaps, particularly given Hayden's impending fiscal challenges from the closure of Xcel Energy's coal-fired Hayden Station in 2027 and 2028. The new code mandates a conditional use permit, which is the highest level of review.

Additionally, the regulations require data centers to use closed-loop or recycled water cooling systems, submit water demand and energy supply analyses, conduct noise studies, and provide thermal impact mitigation plans. Other nearby Routt County towns like Oak Creek and Yampa have not yet explicitly addressed data centers in their codes, while Steamboat Springs has recognized the need but has not set a timeline.