Commerce Halts Data Center Development With Emergency 45-Day Moratorium
The Commerce City Council has enacted an immediate 45-day moratorium on new data center development, citing concerns over massive electricity demand, water use, noise, and air quality. The urgency ordinance was adopted to allow city officials time to develop specific regulations for these facilities, as the existing municipal code does not adequately address them. The council will consider extending the moratorium for an additional 10 months and 15 days after reviewing a staff report.
The Commerce City Council has implemented an emergency 45-day moratorium on new data center developments, effective immediately. The decision, made at an August 11 meeting, aims to halt approvals for land-use permits and other agreements related to data centers while the city devises new regulations to manage their substantial demands.
City officials, including Mayor Kevin Lainez and City Manager Ernie Hernandez, cited a lack of specific provisions in Commerce's municipal code to address the unique challenges posed by modern data centers, such as massive electricity consumption, extensive cooling system water usage, and potential noise and air quality impacts from backup generators. The moratorium provides city planners with crucial time to study data center operations and formulate appropriate land-use standards, zoning amendments, and environmental protections.
Staff are required to present a report to the City Council within 35 days detailing the measures being taken. Following this, a public hearing will be scheduled to discuss potentially extending the moratorium for an additional 10 months and 15 days. Any permanent regulations developed during this period will shape the future permitting requirements and locations for data centers within Commerce, ensuring that economic growth aligns with community well-being and environmental protection.