City leaders will attempt to block the construction of new data centers in Denver for a period of several months or longer.
Mayor Mike Johnston’s office on Monday announced it was working with Denver City Council members on a proposed moratorium so that the city can address concerns about the environmental impact of the facilities, which are hungry for electricity and thirsty for water.
“Data centers power the technology we depend upon and strengthen our economy,” Johnston said in a press release. “But as this industry evolves, so must our policies. This pause allows us to put clear and consistent guardrails in place while protecting our most precious resources and preserving our quality of life. Denver is pro-business and pro-climate, and I’m proud to partner with City Council in keeping Denver one of the top tech sectors in the country and doing so in a way that is responsible to our residents and the industries who wish to invest here.”
City council members are expected to file the moratorium bill in the near future. It would temporarily block new data centers. But it likely wouldn’t be a permanent new policy.
Instead, the city would treat the moratorium as a pause, using the time to “conduct a review of additional, data-center specific regulations around responsible land, energy, and water use as well as zoning and affordability for (electricity) ratepayers,” read a statement from the mayor’s office.
It continued: “The city will launch a process that collaborates with members of the community, climate experts, and industry leaders to clarify guidance and create a policy that is practical, predictable, and transparent.”
The press release noted that data centers have positives, providing high-paying jobs and property tax revenue.
In north Denver, a growing community movement has raised concerns about CoreSite, a Denver-based developer building a 600,000-square-foot data center campus in Elyria-Swansea. Construction is already underway on the first portion of the project. The city, however, hasn’t yet approved plans for two additional facilities.
Alfonso Espino, a community organizer with the GES Coalition, said his group has discussed the possibility of a moratorium with Councilmember Paul Kashmann for a month. He said his group expected a more grueling fight over the idea, but those concerns disappeared after it became clear that Mayor Mike Johnston would support the plan.
“From my view, it cleared all the political barriers to passing a moratorium in the next couple of months,” Espino said.
If the moratorium goes into effect, Espino said he hopes the city uses the opportunity to pass the strictest regulations possible to limit future data center development. He’s especially concerned about the large diesel generators many facilities use to power their operations during blackouts, a potential threat to local air quality.
“Why can’t it be non-carbon emitting?” Espino said. “Like solar panels?”
The proposed moratorium wouldn't affect existing data centers or projects that had already obtained city permits, though they still could be affected by new regulations.
