The data center debate comes to Denver

By Jason Plautz | 03/04/2026 07:04 AM EST

The City Council is considering a one-year moratorium on building data centers, part of a nationwide reckoning over the power and cost impacts of the AI boom.

The exterior of the Colorado Capitol on Wednesday, May 7, 2025, in Denver.

The exterior of the Colorado Capitol in Denver. Rachel Woolf/AP

A proposed data center in a historically disadvantaged neighborhood in Denver could lead to a city moratorium — just as Colorado lawmakers consider statewide limits on the power-hungry sites.

The debate is coming to a head in the northeast Denver neighborhood of Elyria-Swansea, where tech developer CoreSite is planning a 180,000-square-foot facility that would consume enough electricity to supply nearly 20,000 homes. The local backlash helped prompt Denver Mayor Mike Johnston and City Council members to propose a pause on new data centers.

The moratorium — which could face a council vote this month — would give the city a year to review how data centers might affect Denverites’ utility bills and update zoning rules on energy and power use.

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“We need to decide if there’s a way that additional data center development can fit into the Denver context,” said council member Paul Kashmann, a moratorium sponsor. “And if there is, what guardrails do we need?”

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