Photo: Data center in Loudon County, Virginia. Credit Hugh Kenny.
As of mid-July 2026, the national picture continues to favor targeted ratepayer- and resource-protection measures over broad statewide moratoriums — but the moratorium idea gained its most significant foothold yet. New York’s legislature passed the first-in-the-nation statewide measure, the Responsible Data Center Development Act on June 4, imposing a one-year moratorium on new permits for large (20 MW+) data centers…
— from an AI-generated overview posted to https://www.datacenterbans.com/ in July, 2026.
In Part One, I mentioned the data center discussion at the July 21 meeting of the Pagosa Springs Town Council. At that meeting, Town Planning Director Owen O’Dell explained the problem. The Town Land Use and Development Code (LUDC) does not specifically define ‘data centers’ … therefore, it also does not define in which zoning districts a proposed data center might be allowed.
Or if data centers might be totally banned, in every zoning district.
Did the Council want to authorize its Planning Department to work with the Town Planning Commission, to develop some definitions, for later approval by the Council? Did the Council want to put a moratorium in place, perhaps, to protect the community while policies are being developed?
Mr. O’Dell stated that no data centers have yet approached the Town to begin an application process… but it could possibly happen in the near future.
This discussion brought to my mind an earlier process, back in about 2008, when the Town Council and staff were concerned about the possible arrival of a Big Box store. Like, say, a Walmart or Target. Research suggested that the arrival of a Big Box would negatively impact locally-owned mom-and-pop retailers.
A local study group suggested that the Town Council could effectively outlaw Big Boxes by defining the maximum allowable size for a retail store. The issue was bounced around for several months with any clear consensus. The eventual decision did not prohibit Big Boxes, but created special requirements for any retail business larger than 100,000 square feet.
Walmart ‘super stores’ are typically about 250,000 square feet.
When Walmart finally applied for its building permit, their proposed building was 98,000 square feet.
In the meantime, the political configuration on the Council had changed somewhat, and the Walmart was approved, despite of significant public opposition… with much of the opposition coming from locally-owned mom-and-pop stores.
Some of those local retailers did indeed close, within months after Walmart opened its doors. Others managed to weather the storm.
In an apparent reaction to Walmart’s arrival, the uptown City Market store greatly expanded its own footprint. Between the larger City Market and the new Walmart, the Town and County governments saw a significant increase in sales tax revenues. The job market also got a slight boost.
The local consumer economy also got a boost.
The July 21 Town Council discussion focused, not on Big Box stores, but on “Big Boxes Full of Servers” which typically do not need customers to enter, and which hire relatively few employees compared to a retail business.
And there are other issues, as noted by Archuleta County Commissioner Veronica Medina when she argued in favor of a temporary County moratorium, approved on June 16. From an article by reporter Clayton Chaney in the Pagosa Springs SUN, June 18.
Medina stated that for most counties that have data centers, they draw the majority of power in the community. “I just don’t think we can afford that,” she said, noting that the county already deals with power shutoffs due to weather events and that a data center might exacerbate that issue.
She also spoke about water usage being crucial, “and something we really need to think about.”
Readers may be aware of the ‘Drought Stage 2″ watering restrictions currently in place within the Pagosa Area Water and Sanitation District (PAWSD) even without the added challenge of a data center…
Medina explained that in order to do a long-term ban on data centers being built in the county, zoning and land use regulations would need to be changed in order to prevent data centers from being built in any unincorporated parts of the county.
She also noted that state legislation and state law sometimes overrules local regulations.
To my knowledge, the state of Colorado does not currently have any laws prohibiting, or encouraging, data centers per se.
On July 21, when asked if the Council would support the development of new data center regularions in the Town LUDC, and possibly a moratorium… or an outright ban… Council member Mat deGraaf responded:
“I would just like to make it simple and say that data centers are not allowed in the Town of Pagosa Springs. Now or ever.”
Council member Maddy Bergon:
“Yeah, I have yet to be convinced of the advantages of data centers. So I echo Mat’s sentiments.”
Ms. Bergon then asked if newly-appointed Council member Vahid Shabro — who works in the AI industry — if he had any insights to offer.
Vahid Shabro:
“I would say that data centers’ requirements of space and energy reliability may never bring them to Pagosa Springs… I don’t think any ban that we put in place would make a material change on the ground.
“On the other hand, I think if we put in a ban… knowing that [locating here] is not even an option for data centers… then I think it may have implications about our judgements, for or against AI or any new technologies that are coming to the country.”
Ms. Bergon:
“Are you suggesting that there might be technologies in the future that we would want to keep ourselves open to?”
Mr. Shabro:
“Exactly. I think this is a matter of national security for the state, and counties and cities. Banning such technologies would have negative implications for long term national security of the country. Given that these technologies are not compatible with our community, but also, our community is not compatible with these technologies, for the requirements of the space and reliable energy. And cheap energy.
“But by passing a ban, we will be giving credence to other bans that are happening across the country, in places where these technologies can expand and help the country become ready for the future…”
Read Part Four… tomorrow…