Why Denver's considering a data center moratorium
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Denver City Councilmember Paul Kashmann says the city must pause data center development over their massive size, heavy power and water demands, as well as over vague definitions in current zoning laws.
State of play: The plan announced last week with Mayor Mike Johnston calls for a one-year moratorium on building data centers, likely starting this spring.
- It comes as Denver-based CoreSite constructs its latest Denver facility in the Elyria-Swansea neighborhood in part to meet demand for powering AI, an October release from the company states.
Why it matters: Denver's proposed pause thrusts the city into a national clash over data centers, whose enormous energy consumption is leading lawmakers at every level to challenge their utility.
The big picture: Data centers have existed for decades, but the AI boom has intensified scrutiny of new construction, turning them into a political flashpoint.
Catch up quick: The proposed pause will give Denver officials time to review rules around energy and water usage, zoning regulations and potential impacts on residents' utility bills.
- Forty-six data centers operate in Denver, with five taking up entire buildings ranging in size from 53,000 to 188,000 square feet, spokesperson for the city's planning department Alex Foster tells us.
Context: Construction on CoreSite's new site includes three phases, with phase one, a 180,000-square-foot data center at 4900 Race St., already underway in northeast Denver.
- The first phase received council approval under a general industrial "wholesale trade or storage" facility, while additional phases have not yet been permitted, Foster adds.
The intrigue: A pause could help create a new specific zoning regulations for data centers, Kashmann tells us.
- The moratorium won't stop future phases of CoreSite's facility, but it will require a review and permitting to follow any new regulations adopted, Foster adds.
Between the lines: CoreSite's newly proposed facility in Elyria-Swansea is in an area historically besieged by environmentally destructive projects.
- Hundreds of residents attended a meeting on CoreSite's new facility plans last week, with many criticizing the company for its lack of presence: "It was a really big slap in the face of people," community organizer Alfonso Espino tells us.
What they're saying: Company spokesperson Megan Ruszkowski said in a statement their staff's safety prompted the "hard decision" not to attend.
- The company wants to work toward a binding agreement with nearby residents outlining how they will operate in good faith, Ruszkowski added.
- She added their facilities do not train AI models, but instead support the kind of AI that helps applications like voice assistants and navigation apps.
What's next: The city's proposed moratorium could be introduced at a council meeting as early as March 31.