On the agenda: Arvadaco City Council Study Session — Data Center (Aug 11)

City of Arvada
City Council Agenda
AUGUST 11, 2026
Councilmembers:
Lauren Simpson, Mayor
Randy Moorman, Mayor Pro-Tem
Shawna Ambrose, District 2
Sharon Davis, At large
Bob Fifer, District 4
Michael P. Griffith, At large
Rebecka Lovisone, District 3

Staff Members Usually Present:
Don Wick, City Manager
Linda Haley, Deputy City Manager
Allison Scheck, Deputy City Manager
Rachel Morris, City Attorney
Jacqueline Rhoades, Director of Infrastructure
Jessica Garner, Director of Community & Econ. Dev.
Bryan Archer, Chief Financial Officer
Gabriella Bommer, Director of Human Resources
Ryan Stevenson, Director of Vibrant Community & Neighborhoods
Rachael Kuroiwa, Director of Communications & Engagement
Ed Brady, Chief of Police
Kristen Rush, City Clerk

Info: 720-898-7550

THIRD FLOOR CONFERENCE ROOM
The study session can only be watched via Zoom
https://arvadaco-gov.zoom.us/j/89475850775?pwd=84m1LiQXxLFnKPPpF9bJ4fWRKglTxN.1
4:00 PM
STUDY SESSION
THIRD FLOOR CONFERENCE ROOM
4:00 P.M.
1.

Call to Order/Roll Call of Councilmembers

2.

Study Session Topics
A.

3.

City Council Discussion on Possible Data Center Moratorium

Adjournment

REPORT TO CITY COUNCIL
STUDY SESSION
TO: THE HONORABLE CITY COUNCIL

AGENDA ITEM
2.A.

DATE: August 11, 2026

SUBJECT: City Council Discussion on Possible Data Center Moratorium
Report in Brief
The rapid expansion of Artificial Intelligence (AI) has prompted many jurisdictions to examine how their existing regulatory
frameworks guide data center development. Water availability, energy capacity, and land use are all critical considerations in
evaluating the potential impacts of data center development. Several neighboring jurisdictions have recently adopted temporary
moratoriums on new data center development while they evaluate the potential impacts on their communities and update their
zoning, land-use, and development regulations. The Arvada City Council would like to discuss the possibility of establishing a
temporary moratorium in order to provide staff with time to more thoroughly evaluate the resource requirements associated
with data center development, including projected water demand, available water supply, energy needs, and land use
implications.

Background
The rapid expansion of Artificial Intelligence (AI) has prompted many jurisdictions to examine how their existing regulatory
frameworks guide data center development. Water availability, energy capacity, and land use are all critical considerations in
evaluating the potential impacts of data center development. Several neighboring jurisdictions have recently adopted temporary
moratoriums on new data center development while they evaluate the potential impacts on their communities and update their
zoning, land-use, and development regulations.
The Arvada City Council would like to discuss the possibility of establishing a temporary moratorium in order to provide staff
with time to more thoroughly evaluate the resource requirements associated with data center development, including projected
water demand, available water supply, energy needs, and land use implications.
The study session will provide an opportunity to discuss how the city's current Land Development Code (LDC) currently
defines data centers, how data centers are currently zoned and what requirements are in place for the development of a data
center. City Council will hear a presentation from staff and will consider options regarding a potential moratorium.
For reference, the city's definition of data centers in the LDC is as follows: A building that is used exclusively for the
transmission and exchange of telephone signals; or a facility used by telecommunications carriers, internet access providers, or
internet service providers, in which equipment for telecommunications and data processing use (e.g., servers, data storage
devices, switches, routers, and other comparable technology infrastructure) is concentrated and physically secured. Equipment
in a data center may be owned or operated by more than one entity (Chapter 11, Land Development Code).

Strategic Alignment
This study session aligns with the Quality of Life and Local Economy strategic priorities in the 2024-2030 City Council
Strategic Plan.

Next Steps
The city team will follow City Council's direction on whether to consider a public vote to establish a moratorium in the future.

SUBJECT: City Council Discussion on Possible Data Center Moratorium

Prepared by:
Linda Haley, Deputy City Manager
Reviewed by:
Approved by:
Linda Haley, Deputy City Manager
Rachel Morris, City Attorney
Don Wick, City Manager

07/28/2026
07/28/2026
07/29/2026

Enclosure, exhibits & attachments required to support the report

PAGE: 2
ITEM: 2.A.

City Council Study Session Consideration of Temporary
Moratorium on Data Center Facilities
August 11, 2026

Overview
●

Data centers are expanding rapidly nationwide, as well as locally in Colorado.

●

Numerous municipalities and counties across Colorado — including Denver, Jefferson County,
Longmont, and Larimer County — have adopted data center moratoriums.

●

A temporary moratorium on land use applications is a valid exercise of local police power.

●

Arvada has valid and well-documented reasons to pursue a moratorium of its own.
(i.e. need for comprehensive planning, infrastructure analysis, regulatory development, and a
cumulative impact assessment).

What is a data center?
Data centers are specialized facilities that house and manage
computer systems, servers, networking equipment, and storage.
Data center types differ in size, function, and associated
resource and land use impacts.

Edge and Micro Data Center
Small-scale facilities located close to end
users
○
○
○

Building size: 500-5,000 sq. feet
Power demand: .05-1 MW
Examples: cell towers, hospitals,
campuses, industrial facilities

Image shows an example of standalone, prefabricated data center cabinets.

Enterprise and Internal Data Centers
Privately operated facilities used by a
single organization to support internal
computing, storage, and applications
○
○
○

Image shows the Visa USA campus in Highlands Ranch, Colorado.

Building size: 20,000-100,000
sq. feet
Power demand: 1-10 MW
Examples: single corporation,
university, government agency

Regional and Colocation Data Centers
●

Third-party facilities that provide
shared infrastructure and computing
space for multiple customers
○ Building size: 50,000-250,000
sq. feet
○ Power demand: 10-50MW
○ Examples: multi-tenant
facilities, colocation providers
Image shows a CoreSite data center building in Denver, Colorado.

Hyperscale Data Centers
Large-scale facilities designed to support
cloud computing, artificial intelligence,
and global internet services
○
○
○

Image shows a rendering of the new QTS Aurora-Denver Campus currently under construction.

Building size: 100,000-2 million
sq. feet
Power demand: 75-700+ MW
Examples: cloud, AI, and global
internet platforms

Data Center Colorado Map
Denver

47

Colorado Springs

7

Fort Collins

2

Loveland

2

Walsenburg

1

Total

60

Colorado is primarily a market for smaller data centers, however, hyperscale
data centers are being built in Aurora and and planned for Weld County.

Image provided by DataCenterMap.com shows the distribution of data centers across Colorado.

Image provided by DataCenterMap.com shows the locations of each data center in the Denver Metro region.

Who has adopted restrictions?
City

Details

County

Details

Denver

12 month moratorium, passed in May

Jefferson County

10 month moratorium, passed in May

Longmont

Prohibited hyperscale data centers,
passed in June

Boulder County

6 month moratorium, passed in June

Broomfield

18 month moratorium, 10+ megawatts of
power, passed in July

Larimer County

6 month moratorium, passed in
January– extended to August

Woodland Park

18 month moratorium, passed in July

Saguache
County

6 month moratorium, passed in May

Town of
Lochbuie

5 year moratorium, passed in July

Archuleta County

6 month moratorium, passed in June

Why a temporary moratorium?
Here's why municipalities and counties across the state have been enacting data center moratoriums in 2026:
●

●
●
●
●

State legislature failed to act. Cities and counties are moving in part because the state legislature failed to act
in 2026, letting two competing regulatory bills die and pushing any statewide framework off to at least the 2027
session, leaving local governments to fill the gap on their own.
Existing land-use codes don't address data centers. Staff need time to develop land use regulations that
address the specific impacts of these facilities.
Electricity costs and grid strain. Research on rising electricity prices tied to data center power demand and
concern about electricity rate increases for ratepayers living near data centers.
Water consumption for cooling. Cities and counties are wary of the large amount of water needed (and
associated infrastructure) to cool large-scale data centers, a concern raised repeatedly in local hearings.
Noise, nuisance, and general "impact" concerns. Electrical infrastructure, water consumption, noise and
nuisance, environmental impacts, and land-use compatibility.

Data Centers and Existing Code
Definition of a Data Center in Land Development Code (LDC):
“A building that is used exclusively for the transmission and exchange of telephone
signals; or a facility used by telecommunications carriers, internet access providers, or
internet service providers, in which equipment for telecommunications and data
processing use (e.g., servers, data storage devices, switches, routers, and other
comparable technology infrastructure) is concentrated and physically secured.
Equipment in a data center may be owned or operated by more than one entity.”

Data Centers and Existing Code
In Arvada, data centers are classified differently depending on the zoning district. Data
centers are considered conditional uses in the Mixed-Use Suburban (MX-S) and
Commercial General (CG) zoning districts. As conditional uses, they require approval by
City Council following a public hearing.
Data centers are currently considered permitted uses in the Industrial, Light (IL) and
Industrial, General (IG) zoning districts. In these districts, approval may be granted
administratively by the Community and Economic Development (CED) Director without a
public hearing.

Data Centers and Existing Code
Currently, there are minimal restrictions on data centers.

●
●

Prohibited within 300 feet of a residential zone district boundary.
Noise limitations, dependent on location and time of day (Section 38-91,
Arvada City Code).

Staff Recommendations
If City Council wants to consider a temporary moratorium:
Staff recommends the adoption of an 18-month moratorium on the acceptance and
processing of all new land use applications for data centers. This temporary pause is
needed to provide staff with adequate time to research and complete the following:
1.
2.
3.
4.

5.

Comprehensive planning
Infrastructure analysis
Regulatory development
Cumulative impact assessment
LDC revisions