Denver gets closer to imposing data center moratorium

The City and County of Denver is moving forward with a proposal to impose a one-year moratorium on data center development, following its first reading by the city council. This decision initiates a public hearing scheduled for May 18. City officials stated that the moratorium is necessary because data centers in Denver currently lack specific regulations and permitting requirements. The temporary halt will provide time to craft "thoughtful regulations" addressing community safety and equity concerns. Councilman Johnston emphasized the need for updated policies, stating, "This pause allows us to put clear and consistent guardrails in place while protecting our most precious resources and preserving our quality of life." The proposed moratorium would not affect existing data centers or projects already permitted or under construction. While state legislators recently rejected two competing data center proposals—one offering tax breaks and another requiring new renewable energy sources—critics in Denver highlight the significant power and water resources data centers consume, arguing for their regulation. CoreSite's DE3 facility is currently the only data center permitted and under construction in Denver.