Larimer County draft rules would ban data centers of 30 megawatts or more

Larimer County commissioners told staff Oct. 26 they were comfortable publishing draft data-center rules that would ban facilities drawing 30 megawatts or more of peak power anywhere in the county and open public comment.

Below that size, the draft sets three tiers. Micro or edge data centers would draw less than 1 megawatt of peak power, small ones 1 to less than 10 megawatts, and large ones 10 to less than 30 megawatts. Small data centers would be allowed in Industrial Light and Industrial Heavy zones through administrative special review, and large ones in those zones through special review.

Micro or edge data centers would be allowed as accessory uses in the MU-N, MU-C, CC, CN, CD, IL and IH urban zoning districts. The draft would allow only accessory micro or edge data centers in the Estes Valley EV-CO, EV-O and EV-I-1 districts and would prohibit larger ones throughout the Estes Valley Planning Area.

The draft would also keep data centers out of FEMA-designated 100-year floodplains. It would require them to be at least 1,000 feet from residential buildings and lots, schools, hospitals, state-licensed daycares, parks, publicly maintained trails and trailheads, and conservation lands, among other places.

The list of protected sites also includes disproportionately impacted communities. Staff said they would start with Colorado Department of Public Health and Environment designations of disproportionately impacted communities, and that the applicant would measure the distance to show the separation.

Unincorporated Larimer County had no specific land-use regulations for data centers when the Board of County Commissioners established a temporary moratorium on new data-center applications in unincorporated Larimer County in January 2026. The commissioners voted in July to extend the moratorium through Feb. 25, 2027, giving staff more time to develop regulations.

A county survey asked 6,677 respondents whether they would support a data center in Larimer County. Ninety-four percent answered no, 4% were unsure and 2% answered yes. Staff said respondents identified water use, power demand and utility costs among their major concerns.

Staff said people could review the draft and comment through the county webpage and PublicInput.com, and at public hearings. Residents could also send questions through the Larimer Engage public-input webpage or leave a voicemail at the phone number listed there, and staff would respond by phone or email as capacity allowed.

The draft's proposed schedule calls for public release in late October, a Planning Commission work session on Nov. 18 and a comment deadline of Nov. 24. Revised regulations would be published Dec. 9, followed by a Planning Commission hearing Dec. 16 and a commissioners' land-use hearing Jan. 11, 2027.

The draft's water and power rules include these requirements:

• No evaporative cooling, with water and wastewater feasibility studies and monitoring reports
• A stringent renewable-energy factor and no nonrenewable generation as a facility's primary power source
• Power feasibility studies and monitoring reports

A county presentation described a proposed requirement that data centers use at least 80% renewable energy. Staff said a facility buying power from an existing utility would need a will-serve letter and would be subject to that utility's power portfolio. A facility not using a public utility could use its own generation or power-purchase agreements, with renewable-energy certificates used for verification.

Staff said the draft would require applicants to provide a power-supply report discussing potential effects on ratepayers, but the county could not enforce utility rate protections. Commissioner John Kefalas asked whether applicants would be expected to provide that documentation, and staff said yes. He also asked whether the draft included "a requirement or, or an incentive to provide community benefits, for example, to offset the potential increases in People's electric bills."

A staff member said proposed state legislation includes a community-benefit-agreement requirement. It would apply only to data centers above 30 megawatts, a size the county's draft would prohibit.

The draft says a 1041 permit application may also be required if data-center utility infrastructure, such as power generation or electrical transmission, meets the thresholds in Article 10. Staff said they considered local special review and standard development-review processes more appropriate for data centers than adding a state 1041 permitting layer.

Commissioner Jody Shadduck-McNally said she opposed adding data centers to the 1041 process. "I feel like it erodes our local control and hyper— it puts a priority and speeds up the process," she said.

A business-focused county survey conducted in July drew responses from 83 businesses. More than half said the county should not allow new data centers, while 36% favored limiting development and adding safeguards. Staff said 54% did not want new data centers in the county and 70% opposed hyperscale data centers.

Staff said they consulted Fort Collins Utilities, Loveland Utilities, PVREA and PRPA while developing the size thresholds. Staff said large-load utility tariffs generally begin at 10 megawatts and some existing large electricity customers use between 10 and 25 megawatts.

The ceiling started at 50 megawatts, then fell to 40 and landed on 30, Kefalas noted. Staff said the change came through a research process and that survey results, the size of other facilities and proposed legislation fit better with a lower maximum power demand.

Shadduck-McNally said noise and vibration could accumulate near industrial zones and affect nearby people, workers and wildlife. She also asked how the draft would measure and mitigate heat spikes and heat-island effects. Staff said the draft included standards for thermal impacts and that more detailed analysis requirements would be in application submittal materials.

The county canceled its Dec. 14 land-use hearing because only one commissioner was expected to be present that week. Staff said they expected to cancel that day's work session as well, and planned to revise the draft from Nov. 24 through Dec. 1 based on feedback received by then.