Commerce Halts Data Center Development With Emergency 45-Day Moratorium

City Officials Cite Massive Electricity Demand, Water Use, Noise and Air Quality Concerns

By LCCN Staff Report

COMMERCE — The Commerce City Council has imposed an immediate 45-day moratorium on new data center development while city officials determine how the massive power, water and infrastructure demands of the facilities should be regulated.

The City Council adopted the urgency ordinance at its Aug. 11 meeting, temporarily prohibiting approvals of land-use permits, entitlements or agreements involving data center development anywhere in Commerce.

City officials said Commerce’s existing municipal code does not specifically define or regulate data centers, leaving the city without standards designed to address the increasingly large facilities and their potential effects on surrounding neighborhoods and businesses.

“Our highest priority remains the well-being of the people of Commerce,” Mayor Kevin Lainez said. “By taking a thoughtful approach now, we can ensure that economic growth goes hand in hand with protecting the quality of life in our community.”

Modern data centers house large concentrations of computer servers and other equipment used to store, process and transmit digital
information.

But operating that equipment can require enormous amounts of electricity along with extensive cooling systems. Facilities may also require substantial water capacity and backup generators to keep equipment operating during power interruptions.

Commerce officials said the city’s existing zoning regulations do not adequately address potential noise, air-quality and infrastructure impacts associated with such high-intensity facilities.

The moratorium gives city planners time to study data center operations and develop potential land-use standards, zoning amendments and environmental protections specifically designed for Commerce.

“Our focus is to deliver proactive, responsible oversight,” City Manager Ernie Hernandez said. “We aim to ensure Commerce remains prepared to manage complex industrial proposals moving forward.”

The 45-day prohibition may be only the beginning.

City staff must return to the City Council within 35 days with a written report detailing measures being taken to address the conditions that prompted the emergency ordinance.

The council will also schedule a public hearing to consider extending the moratorium for as long as an additional 10 months and 15 days.

Any permanent regulations developed during that period could determine where future data centers are permitted in Commerce and what requirements developers must meet before projects can move forward.