Arvada City Council mulling 18-month partial moratorium on data centers

The Arvada City Council in Colorado is considering an 18-month partial moratorium on data center construction within city limits, following a study session on August 11. The proposed moratorium aims to address growing concerns regarding the strain large-scale data centers place on municipal water and energy supplies. This initiative aligns with similar measures taken by other Colorado municipalities, including Jefferson County, which enacted a 10-month moratorium in May.

City staff categorized data centers into types, with hyperscale facilities being the primary target of the proposed pause. Councilmember Bob Fifer, drawing on his professional experience, advocated for a partial moratorium that would exempt smaller data centers, arguing that Arvada lacks the necessary fiber, pre-existing power, and land for hyperscale operations. He also suggested limiting water consumption as an alternative regulatory approach. Councilmember Shawna Ambrose and Mayor Lauren Simpson concurred with targeting only larger facilities, while Councilmember Randy Moorman supported a total moratorium to allow staff more time for study and to avoid hasty decisions.

The council ultimately resolved to draft an 18-month moratorium that would specifically exclude cell towers and internet service providers. This draft language will require approval at a future business meeting. Discussions also touched on the economic impacts, with Fifer noting that data centers primarily generate revenue through equipment taxes rather than significant local employment. The decision highlights a statewide trend of municipalities evaluating the environmental and infrastructural demands of the burgeoning data center industry.