Salida weighs yearlong pause on data centers as officials study water, power impacts

Salida weighs yearlong pause on data centers as officials study water, power impacts

News ClipArk Valley Voice·Salida, Chaffee County, CO·8/3/2026

The Salida City Council is set to consider a one-year moratorium on new data centers to allow time for developing specific regulations. The proposed ordinance aims to address concerns about the significant electricity and water consumption of such facilities. City officials want to study zoning, water management, and infrastructure issues during this period.

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Gov: Salida City Council, Salida City staff

The Salida City Council is scheduled to hold a public hearing on Tuesday, August 4, to consider a proposed one-year moratorium on new data centers within city limits. The temporary ban, outlined in Ordinance 2026-19, would prohibit the submission, review, and approval of data center applications while city staff works to develop comprehensive regulations for these facilities.

City staff highlighted that communities nationwide are grappling with the rapid growth of data centers, driven by technologies like AI and cryptocurrency. These facilities can demand electricity and water resources comparable to small urban centers, raising concerns about energy demand, water resources, and other environmental impacts. While officials noted a data center is unlikely to locate in Salida soon due to limited electrical capacity, the city currently lacks specific zoning and land-use regulations for the industry.

The proposed moratorium is intended to provide staff with 12 months to study zoning, water management, and infrastructure issues. During this period, the city also plans to monitor anticipated state legislation regarding data centers expected during the 2027 Colorado legislative session. The ordinance defines a data center as a stand-alone computing facility or any operation requiring at least one megawatt of electrical capacity, or those with significant impacts on water or wastewater systems.