Denver Considers Temporary Halt on New Data Center Construction

City officials aim to review regulations and address concerns over water, energy use, and utility costs.

Published on Feb. 24, 2026

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The city of Denver is proposing a temporary moratorium on new data center construction to allow for a review of regulations governing the rapidly expanding industry. The pause, expected to last several months, would enable the development of data center-specific policies focused on responsible land, energy, and water use, as well as affordability for utility ratepayers.

Why it matters

Data centers are essential infrastructure for the digital economy, but their substantial water and energy demands have raised concerns in communities like Denver, particularly in arid regions. The proposed moratorium reflects a broader effort to balance economic development with environmental sustainability and community needs.

The details

The ordinance enacting the moratorium requires approval from the Denver City Council. If approved, the pause would not affect existing data centers or projects already permitted or under construction, but those projects could be subject to the new guidelines once finalized. The city plans to collaborate with residents, climate experts, and industry leaders to develop the new regulations.

  • The proposed moratorium was announced on Monday, February 24, 2026.
  • The moratorium is expected to last 'several months.'

The players

Mike Johnston

The mayor of Denver, whose office stated the pause would allow for the development of data center-specific regulations.

Paul Kashmann

A Denver City Council member who expressed a desire to explore regulations similar to those implemented in other cities to determine whether further data center development remains viable in Denver.

Darrell Watson

A Denver City Council member who plans to introduce the proposal and emphasized the city's commitment to both innovation and environmental protection.

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What they’re saying

“Data centers power the technology we depend upon and strengthen our economy. 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.”

— Mike Johnston, Mayor of Denver (newsdirectory3.com)

“There is still distance between the mayor's view and mine... as well as some other council colleagues.”

— Paul Kashmann, Denver City Council member (newsdirectory3.com)

“Data centers use significant energy and water. We have a responsibility to manage their growth in our communities wisely and sustainably. We can protect the health of Denver communities, strengthen our climate commitments and continue to keep our city moving forward responsibly.”

— Darrell Watson, Denver City Council member (newsdirectory3.com)

What’s next

The proposed moratorium ordinance requires approval from a majority of the Denver City Council. If approved, the city plans to collaborate with residents, climate experts, and industry leaders to develop the new regulations governing data centers.

The takeaway

Denver's proposed data center moratorium reflects a growing trend among municipalities seeking to balance the economic benefits of the digital economy with the need to protect vital resources and address community concerns. The city's collaborative approach to developing new regulations could serve as a model for other cities grappling with the challenges and opportunities presented by the rapid expansion of the data center industry.