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Elyria-Swansea data center opens as Denver weighs tighter rules

CoreSite’s new DE3 facility is drawing scrutiny over its power and water use, noise and pollution as Denver considers stricter limits on data centers. The company says the center will use less water than its maximum capacity allows and is negotiating a neighborhood agreement with local advocates.

Elyria-Swansea data center opens as Denver weighs tighter rules

CoreSite’s new DE3 data center opened this month in Denver’s Elyria-Swansea neighborhoods, bringing renewed attention to the environmental and community impacts of a rapidly expanding industry.

The facility can draw up to 24 megawatts of electricity, though company executives expect peak demand to be about 18 megawatts. It could consume as much as 95 million gallons of water a year at full capacity; CoreSite expects usage to be closer to 115,000 gallons a day, or roughly 42 million gallons annually.

CoreSite says DE3 supports services ranging from video calls to artificial intelligence applications. The company says it is not an AI data center, but it will support AI inference, in which trained models generate results such as recommendations.

“I think people see [other] AI data centers as a manifestation of AI,” said CoreSite spokesperson Megan Ruszkowski, who said the company is working to be more transparent and act as a “responsible builder.” She also suggested some opposition reflects a lack of understanding about different kinds of data centers.

That message has not eased concerns among nearby residents, who have raised questions about noise and air and water pollution. At a Denver City Council event this month, Swansea resident Mercedes Gonzalez said the company’s profits came “at a price — our health.”

CoreSite says DE3 could generate an estimated $200 million in tax revenue over 20 years and employ about 20 people on site. The company is also in mediation with the GES Coalition, a neighborhood advocacy group, over a proposed good neighbor agreement intended to reduce environmental and neighborhood impacts.

Denver enacted a one-year pause on new data center applications in May, but the moratorium did not apply to CoreSite’s project. Mayor Mike Johnston has since raised the possibility of a broader ban as the city considers new regulations. A city working group is examining potential rules for future facilities; CoreSite is not part of that group.

The debate comes as demand for data center capacity grows, driven in part by digital services and AI. For Elyria-Swansea residents, the facility’s opening leaves local officials and advocates weighing promised tax revenue and jobs against the effects of a power- and water-intensive operation in their neighborhood.

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