Denver proposes yearlong moratorium on new data centers

Denver City Council members have advanced a bill proposing a yearlong moratorium on new data center construction and development, set to begin May 21, 2024. The initiative comes as Denver Water calls for a 20% reduction in water use during Stage 1 drought conditions, highlighting data centers as significant water consumers. The proposed legislation seeks to halt new data center projects because these facilities currently lack specific regulations and permitting requirements within the City and County of Denver. Councilmen Darrell Watson and Paul Kashmann, co-sponsors of the bill, emphasized the need for a "pause" to develop "thoughtful regulations" addressing community safety, equity, and the broader impacts of data center development. This pause would allow a special working group, including community members, industry stakeholders, and city departments, to explore impacts and make recommendations. The moratorium would apply to any new or proposed data center that has not yet received a zoning permit or site development plan approval. However, existing data centers and projects already permitted or under construction, such as CoreSite's 170,000-square-foot DE3 facility in the Elyria-Swansea neighborhood, would not be affected. CoreSite's project was approved as a use-by-right under Denver's General Industrial District (I-B) zoning. The proposed moratorium is expected to undergo its first reading before the full City Council on April 20, with a second reading and public hearing likely on May 18.