The Johnstown Town Council approved a temporary moratorium on data-center facilities Monday, pausing new applications and pre-submittal discussions while the town develops regulations specifically addressing the projects.
Council passed Ordinance 2026-295 on a 5–1 vote. Mayor Michael Duncan, Mayor Pro Tem Chad Young and councilmembers Damien Berg, Dianne Morris and Dee Anne Menzies voted in favor of the measure. Councilmember Nick Bashford cast the only opposing vote, and Councilmember Jesse Molinar Jr. was absent.
The moratorium will remain in effect for 12 months from the ordinance’s effective date or until Johnstown adopts definitions, standards, regulations and conditions for data centers into its Land Use Development Code, whichever occurs first. The council may extend the pause if it determines that additional time is needed to complete the regulatory process.
Under the ordinance, the town will not accept applications or participate in pre-submittal activities involving data-center facilities. The restriction includes planning applications, building permits, engineering permits and other development applications related to the facilities.
No data-center project has been approved in Johnstown.
Town cites water, power and infrastructure concerns
The ordinance states that data centers can require significant amounts of electricity and water while also affecting telecommunications networks, surrounding properties and the character of a community.
Town officials also said the facilities could place a disproportionate burden on Johnstown’s long-term management of its energy, water and fiber resources. According to the ordinance, the town does not currently have comprehensive zoning, land-use or water-management regulations that adequately address data-center development.
The temporary pause is intended to give council members and town staff time to study those potential effects and develop regulations through a public hearing process.
The ordinance defines a data-center facility as a purpose-built structure, a substantially modified building or a group of structures used primarily to house computer servers, data-storage systems, large-scale digital processing equipment and networking infrastructure. The definition also includes related systems such as cooling equipment, backup power, telecommunications facilities and battery storage.
Town officials noted that similar facilities may also be described as digital infrastructure facilities, industrial-scale computing facilities or high-intensity computing facilities.
Bashford calls moratorium government overreach
Bashford said during his closing comments that he opposed the moratorium because he believed stopping data-center applications represented an unnecessary expansion of government authority.
“Saying no is government overreach,” Bashford said.
He also said the town would be better served by creating a strong policy governing data centers. His comments indicated that he objected to the moratorium rather than to the town developing regulations for data-center facilities.
The five other council members present supported the measure, allowing it to pass.
State regulations could come in 2027
The ordinance notes that local governments and states across the country are considering how data centers should be regulated. Johnstown officials said the Colorado General Assembly could adopt statewide data-center regulations in 2027 that may affect local governments.
The moratorium gives Johnstown time to consider any state action while determining what local requirements may be needed. Those rules could address where data centers may be located, how their utility demands should be evaluated and what conditions developers must meet before a project can move forward.
Any permanent regulations would need to return to the Town Council for consideration and formal approval.
Johnstown is not alone in taking a temporary approach. Other Colorado jurisdictions have adopted moratoriums or specialized regulations while considering how data centers fit within existing land-use plans and available infrastructure.
The council’s decision gives Johnstown time to develop its own requirements before the town is required to review a data-center application under its current development code.
