Loveland’s yearlong data-center moratorium began in October, staff says

Loveland’s 12-month moratorium on data centers began in October, giving the city time to consider new land-use rules, staff told planning commissioners Oct. 12.

The pause allows staff, City Council and others to study data centers and seek council direction on zoning and other regulations, staff said. Loveland’s Unified Development Code was adopted in late 2018 and took effect in early 2019, before large data centers were a well-defined use in the code. The city’s planning concerns include potential noise, proximity to homes, schools and environmentally sensitive areas, and heat-related microclimates, staff said.

Staff is considering a process that could send larger data centers and other uses requiring conditional-use permits through a neighborhood meeting, a Planning Commission hearing and final City Council approval. The process change is not settled, and no regulatory language has been drafted. It is also unclear whether the council will add regulations, restrict certain sizes of data centers or prohibit them more broadly, staff said.

“I think a lot of people are very interested in seeing some sort of ban, particularly in the larger size scale, the hyperscale size,” a Ward 2 resident said. The resident also urged consideration of facilities of 10 megawatts or more. Loveland’s infrastructure is not well suited to heavy activity, the resident said, urging study of noise and proximity to homes and schools.

A commissioner called for study sessions so commissioners could weigh alternatives before staff developed proposals, saying the commission had a stake in the issue. Staff expects a January study session to share what it knows and seek commissioners’ views before drafting code provisions. Another commissioner said the commission would discuss public comment at study sessions and considered it appropriate given the issue’s importance and strong feelings around it.

After one City Council study session on data centers, another is planned for Oct. 27 at 6:00, with presentations from Economic Development, Development Services and the City Attorney’s Office, staff said. The Utilities Department is scheduled to brief the council Dec. 8 on data centers, utility issues and coordination with other city departments on possible provisions. Staff hopes to have provisions ready for council review and adoption by late spring or early summer, before the 12-month moratorium ends.