Development Watch: Saguache County Takes a Closer Look at Data Centers

Data centers may not yet be part of the Saguache County landscape, but county officials are trying to make sure they have rules in place before one comes knocking at the door.

Saguache County is currently operating under a six-month emergency moratorium on new data center projects while officials study whether the county's existing land-use regulations are adequate for this rapidly growing type of development.

The moratorium was unanimously approved by county commissioners in May and remains in effect through Nov. 5.

Why the County Hit the Pause Button

The pause was not prompted by a data center application already sitting on the county's desk. At the time the moratorium was adopted, Saguache County's Land Use Department reported that it had received no inquiries for such a project.

However, the San Luis Valley Rural Electric Cooperative had informed commissioners that it had received three inquiries from data center companies. Commissioners determined that existing county regulations were not sufficient to address the issues that could accompany large-scale data center development.

Rather than waiting for a specific proposal and then trying to write rules under pressure, the county chose to temporarily halt new projects while it examines possible changes to its Land Use Code and its regulations governing projects with potentially significant local impacts.

Community Conversation Begins

That process moved into a more public phase on Sept. 3, when Saguache County scheduled a community informational meeting devoted specifically to data centers.

Representatives from San Luis Valley Rural Electric Cooperative and Colorado Communities for Climate Action were invited to provide information and different perspectives, with residents given an opportunity to ask questions.

Among the questions surrounding data center development are electricity demand, water use, infrastructure, land-use impacts and what economic benefits such facilities might provide to rural communities.

A Valley-Wide Conversation

Saguache County isn't alone in taking a cautious approach. Data centers have become a broader San Luis Valley issue as local governments consider how this relatively new type of development fits into communities where water, electricity and rural character are already important concerns.

South Fork has adopted a one-year moratorium while it studies potential impacts and develops a public engagement process. Rio Grande County has also adopted a one-year moratorium as officials review land-use regulations.

The different actions do not necessarily amount to a rejection of data centers. Instead, local governments are giving themselves time to decide what requirements should apply if developers seek to locate facilities here.

What Happens Next?

For Saguache County, the clock is running. The current moratorium expires Nov. 5, giving commissioners roughly two more months to continue gathering information, hearing from residents and considering whether changes are needed to county regulations.

For now, there is no confirmed data center project before Saguache County. What is developing is the framework that would determine how such a proposal would be considered if one arrives.