Denver Passes One Year Moratorium On Data Centers
City officials halt two planned data center projects in the region.
May 19, 2026 – The Denver City Council unanimously approved a one-year moratorium on new data center development Monday.
The measure pauses the acceptance and processing of new zoning permits and site development plans for data centers across Denver while the city drafts rules governing energy consumption, water use, noise standards and siting requirements.
The moratorium does not impact the CoreSite DE3 data center already under construction near 49th and Race streets in the Elyria-Swansea neighborhood. However, it blocks two additional buildings the company had planned for the same campus.
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City officials said the pause will remain in effect for up to one year or until Denver adopts a formal regulatory framework specifically tailored to data centers.
Denver currently lacks zoning rules or environmental standards specific to the rapidly expanding industry, despite increasing concern nationwide over the strain large artificial intelligence and cloud computing facilities place on power grids and water supplies.
Mayor Mike Johnston backed the temporary halt, saying the city needs time to establish clearer policies before additional projects move forward.
Community opposition to the CoreSite facility has steadily intensified over the past year. In February, dozens of residents gathered outside the construction site demanding meetings with company representatives and greater transparency about the project’s long-term impact on the surrounding neighborhood.
“This is an important first step,” said Alfonso Espino, lead organizer for the Globeville Elyria-Swansea Coalition. “But we want to ensure that we will make this moratorium mean something.”
Residents and environmental advocates have raised concerns about electricity demand, noise pollution and especially water usage tied to large-scale cooling systems required to operate data centers.
A spokesperson for Denver Water said the DE3 project’s projected water consumption would be “far above the typical industrial user and far above the volume of other data centers in the region.”
According to Denver Water, the average industrial customer in its service territory consumes approximately 4.4 million gallons annually. Officials estimate the DE3 facility could require roughly 20 times that amount once operational.
