Commerce City Council Votes 7-1 to Pause New Data Center Development for Six Months

Commerce City’s city council voted 7-1 on Sept. 21 to approve a six-month moratorium on new data center development, becoming the latest Colorado municipality to hit pause on the rapidly expanding industry.

The ordinance passed with Council Member Rocky Teter casting the only no vote. Council members did not debate the measure during the regular business meeting, but the ordinance cites the potential “significant impacts” data centers could have on city infrastructure and resources, including electrical usage, water supply and telecommunications networks.

City officials also noted that Commerce City’s land development code does not currently include specific regulations or standards for data center buildings. The moratorium is intended to give the city time to study those issues and draft rules for any future projects.

Council Member Charles Dukes said Commerce City currently allows data centers to operate under a conditional use permit, meaning they can be built in areas not specifically zoned for them because the city’s code lacks hard definitions.

“We have had a discussion about data centers for a little bit of time now,” Dukes said. He added that the city remains “open for business,” but the council wants to weigh both the benefits and drawbacks before moving forward.

“There is a lot of excitement from communities for potential economic benefit. There’s also a lot of fear about what it could be or what it couldn’t be,” Dukes said. “As a council, we just wanted to take a balanced approach.”

The vote follows growing public resistance to data center projects across Colorado. A recent survey by Magellan Strategies found that 86% of Colorado voters oppose data centers near their neighborhoods, while 82% oppose them in their cities or towns. The same survey found 77% oppose them in their counties and 75% oppose them elsewhere in the state.

Commerce City’s moratorium adds to a growing list of temporary pauses across the region. The Denver City Council unanimously approved a one-year moratorium on new data center development in May, though projects already under construction were allowed to continue, including a data center in north Denver.

Jefferson County extended its own moratorium on new data centers until March, while Larimer County has also extended its pause as officials consider new regulations.

The wave of local restrictions comes as data center development has accelerated across Colorado since the late 2010s, driven by demand for artificial intelligence, cloud computing and other data-intensive technologies. Local governments are now racing to update zoning codes and infrastructure standards while weighing the industry’s promises of jobs and tax revenue against concerns about energy use, water consumption and neighborhood impacts.

Commerce City’s six-month moratorium will remain in place while city staff research potential regulations and present recommendations to the council.