Johnstown Council to Consider Temporary Data Center Moratorium Monday

The Johnstown Town Council will consider temporarily pausing data center development Monday while town officials develop regulations specifically addressing the large facilities. Ordinance 2026-295 is scheduled for a public hearing during the council’s July 20 meeting, which begins at 7:00 p.m. at Town Hall, 450 S. Parish Ave.

The proposal marks a significant step beyond the council’s July 13 work session, when members discussed whether data centers should be allowed in Johnstown and what regulations may be needed to govern their development. Town staff told the council that Johnstown’s current Land Use and Development Code does not define data centers as a separate land use, meaning a proposed facility could potentially be classified as a warehouse with indoor storage and considered through the Town’s Use by Special Review process in certain industrial zoning districts.

Councilmembers directed staff to begin developing a clearer policy outlining where data centers could be located and what standards should apply. The proposed moratorium would give the Town time to complete that work before new applications or approvals move forward, although the ordinance is expected to clarify the duration and scope of the pause, including whether it would apply to any applications already submitted or under review.

No data center project has been approved in Johnstown. The Town has nevertheless begun examining the issue as data center development expands across Colorado and communities consider how to regulate the industry’s land, power, water and infrastructure demands. Johnstown Republic previously examined those questions in its July 12 report, “Are Data Centers Right for Johnstown?”, which outlined the potential tax benefits, infrastructure demands and regulatory issues facing town officials.

Johnstown’s proposed moratorium follows similar action by Larimer County, which adopted a temporary pause in January on accepting and processing applications for new data centers in unincorporated areas. Commissioners later extended the moratorium through Aug. 25 while county staff develops land-use standards. The county moratorium does not apply within Johnstown because municipalities control land-use decisions inside their boundaries. As Johnstown Republic previously reported, Ordinance 2026-295 would create a separate pause covering facilities under the Town’s jurisdiction.

The proposal also comes amid growing public interest in the potential effects of data center development. Residents have raised concerns about electricity demand, water use, noise, environmental impacts and whether the facilities would generate enough permanent jobs or broader economic activity to justify their infrastructure needs. Johnstown Republic recently reviewed residents’ water and power concerns, including how data center resource use can vary substantially depending on a facility’s size, design and cooling technology.

Supporters of data center development often point to construction investment, property-tax revenue and the growing demand for digital infrastructure. Johnstown officials have not approved a project or adopted a formal position on whether the Town should encourage such development.

Monday’s public hearing will give residents an opportunity to comment before the council considers Ordinance 2026-295. Residents can review the agenda and meeting materials through the Town of Johnstown’s CivicClerk portal.