The Hayden Town Council tentatively plans to implement a moratorium on data centers, after over a dozen residents spoke out last week on the council’s addition of data center language into its development code, raising concerns about water use, public-health and environmental impacts, and the transparency of the town’s process.

The public hearing, which took place at the Town Council meeting Thursday, was scheduled after the council voted 4-1 on Aug. 6 to add data center language into its municipal code, making it the first municipality within Routt County to do so. 

Section 10.03.05 of the development code, which outlines use-specific standards, now explicitly lists data centers as an allowed use within the heavy industrial category, paired with limitations on size and power demands, along with other requirements for potential developers. 

Mayor Ryan Banks clarified prior to the start of the public hearing that no data center is currently proposed to be constructed in Hayden. 

“What we did was approve rules around data centers, specifically called out in our new land use code. That’s all we did,” he said. 

He recognized sentiments of “mistrust” from community members, referring to the opaque and at times contradictory way in which data center conversations have unfolded between the public and municipal government in Moffat County in recent months, and noting that they are “not being very truthful about what they are doing.” 

He also admitted that data centers are “devastating in many ways.” 

“I’m here today to tell you that myself — no one on this council, no one on our staff — has signed a (nondisclosure agreement),” said Banks. “There is no undercurrent of something happening.”

He also said that while data centers in Routt County were announced in June as prohibited by default, that policy only applies to unincorporated parts of the county and not to the municipalities within it.

During the public hearing, Hayden residents outlined a wide range of reasons for their unease or outright opposition to a data center being built in the town. 

According to multiple commenters, an unofficial petition was circulated, requesting the town to implement a three-year moratorium on data centers; the signees intended to go through the town’s formal petition process if a moratorium was not considered. 

During the comment period, Timothy Boyle said that while most community members are concerned about the impacts of the upcoming closure of Hayden Station and understand the town needs to foster economic development, residents “need to start asking hard questions about who is leading.” 

“The majority of main street commercial units are still empty three years in, and the various business parks are not filling up as promised,” said Boyle. “A drive down (U.S. Highway) 40 looks pretty bleak with only a handful of storefronts.”

“We need to fill empty spots and create jobs. Data centers are not that,” added Boyle, who went on to encourage his fellow community members to come to meetings more often and consider joining local boards and commissions. 

Community member JJ Pike spoke after Boyle, noting that she was on “development groups” for the new code and did not recall language around data centers ever being raised, let alone discussed. 

She acknowledged the Town Council’s rationale for “filling loopholes” within the previous code that could otherwise be exploited by developers, but said the process “could’ve been handled a little differently.” 

“I’m suggesting you put a moratorium on this developmental code,” she said. “Give us a chance to figure out what they’re all about.” 

One commenter said her job of 37 years was replaced by artificial intelligence, describing herself as “just one of thousands and thousands and thousands of people who have lost their job because of AI.” 

Another commenter encouraged the Town Council to do more research on the potential repercussions of living near a data center by talking to people in communities who have “lived this nightmare of what a data center means.” 

Local resident Tracy Tydeman outlined a list of what she viewed as possible consequences from allowing a data center to be built in Hayden: an increase in utility costs; town water being at high risk for contamination; an increase in water restrictions; negative impacts on wildlife; noise pollution; and the threat to the physical health of those living near the development — particularly those with pre-existing health conditions. 

“Does this sound like risks worth taking for a possible payout?” said Tydeman. 

“What changed? Did you find lots of good research and studies showing that data centers are being falsely accused of destroying the environment?” she continued. “Health concerns are not valid? Noise levels, light pollution, and massive uses of water are all false?” 

“Please do not gamble with our lives and our community and our homes,” added Tydeman, who joined other commenters in requesting a three-year moratorium. 

Community member Ericka Lucas noted examples in other U.S. communities where data centers have “pushed limits” and led to negative outcomes for local residents. She asked how a town of roughly 2,000 people will hold what will likely be large-scale, multi-million or multi-billion dollar companies to account should something go wrong. 

“We should not be asking, ‘What is the biggest taxpayer we can find?'” said Lucas. “We should be asking, ‘What kind of economic development gives Hayden sustainable revenue without putting our water, health and quality of life at risk?'” 

“If Hayden isn’t currently zoned for high-density data centers, then maybe the answer should simply be: we aren’t zoned for them, and we never will be — because this town chooses people over profits,” she continued. “We are not sellouts, and we are not for sale.” 

A three-year moratorium, she said, would give the town time to conduct “proper research, collect real data” and gather deeper insights into how a data center would impact the town’s water, health, infrastructure and overall community character. 

Hayden resident Lacey Williams underscored the importance of the town acting now, before a developer arrives and the community is “forced to respond under pressure.” 

“We should not invite industrial development that could compete with our families, farms, wildlife and future growth for those resources,” she said. “These consequences must be considered now — not after an application has been submitted.” 

“Once Hayden’s clean water, and quiet, nice and rural character are damaged, we will not get them back,” she added.  

Going a step further than other commenters’ requests for a moratorium, Williams asked council to prohibit data centers in the code altogether. 

Community member Ryan Lucas followed Williams, reminding the individuals in the room that the Routt County Climate Action Collaborative is hosting an open house on Wednesday, Sept. 9 to update the public on projects in the region that have helped reduce greenhouse gas emissions. 

“I don’t think any attendees will be celebrating your recent code update to include the potential data center development,” said Lucas.

“I wonder if event participants, including fellow elected officials and public leaders from other municipalities, would argue that any code update not explicitly prohibiting data center development is detrimental to (the Climate Action Plan’s) mission to reduce local emissions,” he added. 

Following the public comments, Banks reiterated the importance of having rules in place to ensure that a process can be followed and that a “really robust platform” for discussion exists. 

“To say no to anything in the situation that we are in, to me, is short-sighted,” said Banks. “Meaning 10 years ago, Hayden Station announced they were closing that plant. The vibe in our community was that we might as well blow up the sidewalks because this community’s dead.”

“I refuse to believe that. I also know there is no one coming to save us,” the mayor continued. “There is not going to be some knight in shining armor that’s going to come in and rebuild the power plant.” 

“I want our school to have money to not only provide an education to my kids and your kids — I want them to have the money to actually pay their teachers a living wage,” he said. “I want our fire districts to employ people and keep them for the long term and not lose them to higher-paying agencies throughout the valley.”

“I’m not saying data centers are the answer — I’m saying that saying no to anything in the situation we are in, knowing we have a robust review process, is outside of what I am comfortable with,” added Banks, who acknowledged the importance of balancing risk with reward. 

Banks asked Town Manager Mathew Mendisco how the town should approach implementing a potential moratorium. Mendisco suggested that town staff bring an emergency ordinance to council at its next meeting on Sept. 17, at which point council can determine the moratorium’s duration.