As Johnstown begins considering how data centers should fit into its future development plans, Larimer County is already several months into a temporary moratorium on new data center applications while county officials work to develop regulations for the industry.
The Larimer County Board of County Commissioners first adopted a temporary moratorium on Jan. 27, 2026, covering the acceptance and processing of applications for new data center facilities in unincorporated areas of the county. Following a public hearing in February, commissioners extended the moratorium through Aug. 25, 2026. According to Larimer County’s data center moratorium page, the pause is intended to give staff time to research industry practices and develop land-use standards addressing the potential impacts of data centers.
The county’s current Land Use Code does not contain specific definitions or regulations for data centers. Larimer County also says no site-specific data center application has been submitted in unincorporated parts of the county. Because county zoning authority applies outside incorporated cities and towns, the moratorium does not directly control land-use decisions made by municipalities such as Johnstown.
Still, Larimer County’s approach provides a nearby example of how local governments are responding to the rapid growth of an industry that can bring significant investment while also raising questions about electricity demand, water use, noise, heat, infrastructure and land use.
Larimer County says the pause is being used to gather information and public input while staff develops land-use regulations addressing the potential impacts of data centers.
More recently, Larimer County Economic and Workforce Development asked business leaders to provide feedback on data center development. The July 9 outreach said the county is evaluating the potential impacts and regulatory issues associated with data centers in unincorporated areas while the temporary moratorium remains in place.
That discussion is unfolding at the same time Johnstown officials are beginning to consider their own approach.
The July 13 Town Council work session agenda called for Johnstown staff to present information about data centers and seek direction from councilmembers on whether the Town should develop a formal policy governing their attraction and development.The Town’s current Land Use Development Code does not specifically define data centers as a separate land use. Under the existing code, a data center proposal could be treated as a “Warehouse with Indoor Storage” and reviewed through the Use by Special Review process in certain industrial zoning districts.
Johnstown staff is asking Council to consider a range of policy questions, including whether data centers should be permitted by right, require special review or be prohibited. The discussion also includes whether Johnstown should create a separate land-use classification for data centers, which zoning districts should allow them, what development standards should apply and whether the Town should consider economic incentives for qualifying projects.
The scale of potential facilities is one of the major issues before the Town. Johnstown’s presentation distinguishes between smaller “boutique” data centers, generally estimated at 1 to 15 megawatts of electrical demand, and hyperscale facilities that can require 100 to more than 1,000 megawatts. For local context, Town staff estimates all 8,097 housing units in Johnstown together use approximately 26 megawatts during peak demand.
Water use is another consideration, although the amount can vary substantially depending on the cooling technology used. Johnstown’s staff report outlines several systems, ranging from air cooling and closed-loop systems to direct-to-chip and open-loop cooling. The Town notes that open-loop systems generally have the highest water consumption, while closed-loop systems can continuously recycle much of the water they use.
The potential financial benefits can also be significant. Johnstown staff created a fictional example involving a 35-megawatt data center with $2 billion in new machinery and equipment. Under the assumptions used in the model, including a hypothetical 50% rebate of eligible Town tax revenue to the company, the project could generate approximately $11.6 million in net new Town revenue over three years or approximately $19.4 million over five years. The figures are illustrative and are not tied to an announced or proposed data center project in Johnstown.
Data centers can also present trade-offs. Johnstown staff identified their relatively low demand for municipal services and potentially strong property and personal property tax revenue as advantages. At the same time, the facilities generally create fewer permanent jobs relative to the amount of land and infrastructure they use and can generate less secondary economic activity than other commercial or industrial developments.
The two governments are approaching the issue from different starting points. Larimer County temporarily stopped accepting new applications in unincorporated areas while it develops specific regulations. Johnstown’s existing code could already accommodate an application under a broader industrial-use category while the Town considers whether more specific standards are needed.
For Johnstown residents, the question is no longer simply whether data centers could become part of Northern Colorado’s growth. The more immediate question is what standards, limitations and potential incentives local governments should establish before a proposal arrives.
