#Denver Announces Moratorium on New Data Centers

Data center construction at 49th & Race, Denver. Photo credit: Allen Best

Click the link to read the release on the City of Denver website:

February 23, 2026

Mayor Mike Johnston today joined members of City Council in announcing it intends to file a moratorium on new data centers in Denver. The process, which is expected to last several months, will allow the city to review and strengthen regulations around the sites.

“Data centers power the technology we depend upon and strengthen our economy,” said Mayor Mike Johnston. “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.”

An ordinance announcing the moratorium will be filed by Council. If approved, the city will conduct a review of additional, data-center specific regulations around responsible land, energy, and water use as well as zoning and affordability for ratepayers. 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.

“Data centers bring with them a unique series of environmental challenges and neighborhood impacts,” said Councilman Paul Kashmann. “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 there remains distance between the Mayor’s view and mine – as well as some other Council colleagues – I look forward to working with the administration, the community at large and industry voices to see if regulations – as have been instituted in sister cities around the country – will or will not make additional data center development possible in the City and County of Denver.”

Data centers provide significant economic impact through high-paying jobs and property tax revenue. They are also a necessary component of many aspects of our daily lives, from operating major sectors like healthcare, automotive, retail, and shipping to everyday tasks like sending an email, streaming a movie, or using an app on your phone.  

“Denver is a city that embraces innovation. We are also committed to protecting our environment,” said Councilman Darrell Watson. “Data centers use significant energy and water. We have a responsibility to manage their growth in our communities wisely and sustainably. I will be introducing common sense legislation built on that premise. We can protect the health of Denver communities, strengthen our climate commitments, and continue to keep our city moving forward responsibly.”

Existing data centers and projects currently permitted or under construction are not impacted by this decision, though they may be expected to follow new guidelines once announced.

Leave a Reply