Denver City Council Enacts 180-Day Moratorium on Hyperscale Data Centers to Safeguard Power Grid

DENVER, CO — The Denver City Council voted 11–0 to enact a 180-day temporary moratorium on building and land-use permits for hyperscale commercial data centers exceeding 20 megawatts of electrical load.

Insulating Regional Grid Capacity and Water Resources

The moratorium ordinance directs the Denver Office of Climate Action, Sustainability and Resiliency (CASR) and Xcel Energy to complete a comprehensive study on data center water consumption and electricity rate impacts on residential neighborhoods. Council members highlighted that proposed AI server farms in Northeast Denver could consume energy equivalent to 40,000 homes while straining municipal stormwater systems.

Council members emphasized that Denver supports technological development but must ensure clean energy transition targets are not compromised by unmanaged industrial energy loads.

Technology Sector and Environmental Reactions

Clean energy federations supported the temporary pause to formulate strict microgrid and renewable co-location standards.

Data center developers requested grandfathering provisions for projects already undergoing formal site plan review.

Study Completion Milestones

CASR will deliver the final regulatory framework and zoning recommendations to council in February 2027.