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Denver, Colorado, is taking steps to address the environmental and regulatory challenges posed by the rapid growth of data centers. Mayor Mike Johnston, alongside members of the Denver City Council, has announced a plan to temporarily halt new data center projects for several months. The proposed moratorium aims to establish clearer regulations for the industry, which has drawn concerns over its energy consumption, water use, and local impacts.
"Data centers power the technology we depend upon and strengthen our economy", Mayor Johnston said in a statement. "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."
The moratorium would not affect projects already approved, including the DE3 data center by CoreSite, which is currently under construction in Denver. However, any future expansions or new facilities would need to comply with updated guidelines that may result from this pause.
The moratorium has received support from Councilmember Paul Kashmann, who highlighted the unique challenges data centers pose to the city. "Data centers bring with them a unique series of environmental challenges and neighborhood impacts", Kashmann said. "My office has been looking into this topic in depth in recent months. I believe the complexity of the issues involved merits our city taking a pause to give them adequate consideration."
While Kashmann has voiced support for the pause, some council members have pushed for even stricter measures. Councilmember Stacie Gilmore recently called for an outright ban on data centers in Denver. "In the City and County of Denver, we should ban data centers", she said during a town hall event.
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The debate in Denver mirrors growing concerns nationwide about the impact of data centers. Following news of the city's proposed moratorium, U.S. Senator Bernie Sanders reiterated his call for a federal pause on new data center construction, particularly those tied to artificial intelligence. "We need a federal moratorium on AI data centers", Sanders said, emphasizing not only the strain on energy resources but also the potential consequences for jobs as artificial intelligence expands.
The issue of regulating data centers is not isolated to Colorado. Similar moratoria have been proposed in Maine and New York State, reflecting widespread apprehension about the environmental and economic impacts of this booming industry.
In addition to the proposed moratorium in Denver, Colorado lawmakers are exploring two new bills targeting data centers statewide. One proposal seeks to mandate 100 percent renewable energy use for large-load data centers, while another offers tax incentives to facilities that adopt renewable energy solutions. These measures highlight the state’s dual focus on fostering economic growth through technology while addressing environmental sustainability.
As Denver prepares to enact its temporary pause, the outcome could set a precedent for cities across the United States grappling with similar concerns. Whether through stricter regulations, renewable energy mandates, or outright bans, the conversation about data centers is likely to continue shaping urban and national policies in the months ahead.
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