Is the Loveland City Council considering if we allow large AI data centers in the city?

The short answer here is yes. We have a few possible paths:

• Do nothing and have no rules on the books that address AI data centers specifically (I do not believe that this is where we will end up)

• Put regulations in place to protect people, wildlife, and the environment

• Ban them (my preferred)

• A mix of bans and regulations

Anything other than the do-nothing option means we need to update our rules. The one year- data center application suspension/moratorium gives us time to update them. If we update our rules before the one year is up, the moratorium will end.

Why was the city speaking to a company about a data center?

Right now, there is nothing in our rules that says these AI data centers aren’t allowed. City staff responded to a development inquiry like they do all others. The city employees can only follow and enforce the rules and regulations that city council makes. This is why it’s so important to update our rules.

And this is why we’ve seen videos of elected officials in rooms full of angry neighbors worried about approving a data center because their hands are tied. Without restrictions or adopted regulations, if a business is following the rules on the books and the city rejects their plans, that can open us up to lawsuits, and it would be hard to win in court.

Is the “complete application” wording in there to help a data center slip through?

No, that language is in there because it is a law that we must follow. Even if we took it out, we’d still have to allow complete applications to proceed. But we, council and city staff, got protections in place before an application was ever submitted. This is why the city statement on applications was, “A company contacted City staff with interest in establishing a data center in Loveland. However, the City has no applications at this time.”

We are not discussing if we should approve a singular data center; we are talking about rules for all data centers.

Who decides what information is in the city council meeting presentations?

City staff make these presentations, and they often hire contractors and work with local partners to address large topics like this. But there’s also you! If you have a source you want council to see, email us at ccouncil@cityofloveland.org.

Who will write the rules for data centers?

Over the next couple of study sessions, council members will tell staff what they want to see: bans, regulations, or a mix of both. City staff will take that feedback and draft regulations. Those drafts go to applicable commissions, such as the planning and utilities commissions, for discussion before coming to council for discussion and consideration. Those rules are posted in the packet and summarized during the city council meetings. If we are at a meeting where decisions are made, community members tell us what they want during comment periods (but also through emails and phone calls beforehand). And finally, council will debate and vote on them. So who writes the rules? Ideally, all of us, together.

What options do community members have to get involved in this process?

You can attend the study sessions, council meetings, and reach out via email or phone to council. If you want a ban, specific regulations, a mix of both, or something else entirely, let us know. You can also attend planning commission meetings to learn more about the development review process. They will also have a presentation on data centers on Oct. 12 at 6 pm in the City Council Chambers (500 East Third Street, Loveland, CO).

For up-to-date information about future study sessions (and more), visit the city's data centers page.

What kind of revenue would the city get from a data center?

It would come mostly at the front end, as a one-time revenue source, when they are paying building fees and purchasing the materials and equipment. But there will also be tax revenue generated when their servers and equipment get replaced or upgraded. The city will also receive some of the property tax that is collected, but it is split between the city, county, school district, and other special districts. We do not know what that could look like in terms of dollars. The city does not get any tax income from services, which is what a data center provides.

Would a data center in Loveland raise our utility bills?

The short answer is no; the Platte River Power Authority (which we co-own with Fort Collins, Estes Park, and Longmont) is a nonprofit model where businesses pay for themselves. We actually just had a contract expire with Loveland’s largest power user, and we, as a council, approved a new contract with no sweetheart deals.

Am I under an NDA?

No, and I have not been approached or asked to sign a data center NDA.

If businesses don’t follow our rules, what can community members do?

You contact the city. Here are some helpful links:

• When to call code administration (flyer)

• Code Administration Office

What’s happening at the Woodward property?

They are repairing a burst pipe.

Trust & Transparency

I hear your calls for more transparency, and I believe there’s always opportunity to improve how we do things. I’m going to start making videos that address frequent questions that are rolling into my city council inbox. So, if you have a topic or question you want answered, please email me at sarah.rothberg@cityofloveland.org. I can’t promise that I’ll make a video on every question, but I will definitely get it answered.