Cheyenne City Council Meeting - May 26, 2026: Data Center Moratorium Rejected, Budget Passed

The Cheyenne City Council held a six-hour meeting on May 26, 2026, addressing a wide range of items including consent agenda approvals, ordinance readings, public hearings, and a heavily debated proposal for a 12-month moratorium on data center development. The council ultimately defeated the moratorium by a vote of 1-8, with only Councilman Moody in favor. Numerous other items were approved, including the fiscal year 2027 city budget, water and sewer rate increases, and rezoning of business parks.

Consent Calendar

• The consent agenda was approved with items 19 (Cheyenne Regional Airport Board budget) and 28A (Yellowstone Road and Del Range Boulevard rehabilitation project) removed for separate discussion.
• All other routine items listed as CA were enacted by one motion.

Public Comments & Testimony

• Data Center Moratorium (Item 14): Over 50 members of the public spoke, with opinions sharply divided. Supporters of the moratorium cited concerns about water usage, grid stability, noise pollution, health impacts, lack of transparency, and the pace of development. Several residents noted that existing data centers have caused no measurable harm, but argued for a pause to study cumulative effects. Opponents, including union tradespeople and business leaders, emphasized job creation, economic diversification, tax revenue, and the risk of sending a negative signal to future investors. Multiple speakers referenced Microsoft and Meta's community investments, such as the Microsoft Data Center Academy and a $3.4 million affordable housing grant from Related Digital.
• Oversized Vehicle Ordinance (Item 8): Two owners of I-25 RV Storage spoke in favor of stricter enforcement and removal of size thresholds, stating that their business had suffered due to lack of enforcement. A resident also supported the ordinance, citing nuisance vehicles.
• Solid Waste Fee Schedule (Item 9): One resident questioned fee increases, and the mayor explained the annual adjustment process, with residential increase averaging 33 cents per month.
• Business Park Rezoning (Item 12): Several residents opposed reduced landscaping requirements, arguing that tree removal would harm aesthetics, buffer noise, and affect property values. Supporters, including Cheyenne LEADS, noted the need for flexibility to attract diverse businesses and support employee amenities like daycare.
• Water and Sewer Rates (Item 13): A few residents opposed the increases, citing cumulative utility cost burdens. Staff clarified that the Board of Public Utilities is an enterprise fund with clean audits and that increases are driven by infrastructure costs.
• Airport Budget (Item 19): One resident criticized the minimum revenue guarantee with United Airlines and questioned the airport's maintenance of landscaping on Airport Parkway. The new airport director committed to updating the MOU and restoring greenery.

Discussion Items

• Oversized Vehicle Ordinance: The council debated an amendment to remove all size measurements and apply the ban to all recreational vehicles as defined by state statute. Councilman Wolf and others argued that the public had not been properly notified of such a significant change on third reading. The amendment failed on a voice vote (appears 1-8, with only Dr. Aldridge voting yes). The main ordinance, as amended by a substitute to change enforcement from nuisance to police, passed on third reading with Councilmen Seagrave, Labourne, and Moody voting no.
• Business Park Rezoning (Item 12): The planning department explained that the change from LI/HI/CB to BP allows more uses (e.g., daycare, retail) and reduces on-site tree requirements but does not change allowable uses for data centers. After extensive public comment, the ordinance passed on second reading with Councilman Moody voting no. Councilman Moody suggested future consideration of noise buffers.
• Water and Sewer Rates (Item 13): Councilman Seagrave noted the need for rate increases to maintain infrastructure, citing chemical and pipe cost increases. The ordinance passed on second reading with Councilman Moody voting no.
• 12-Month Data Center Moratorium (Item 14): Councilman Moody, the sponsor, urged a pause to study environmental, grid, water, and health impacts, noting that other communities like Denver and Jefferson County had enacted similar measures. Opposition from other council members argued that the city has 14 years of data, existing protections (enterprise funds, LPC tariff), and that a moratorium would chill investment. Councilman Wolf stated the ordinance was unworkable because staff could not perform the required studies. The motion to approve on second reading failed 1-8, with only Moody voting aye.
• Cheyenne Regional Airport Board Budget (Item 19): Council members noted ongoing maintenance issues on Airport Parkway and requested the new airport director revise the MOU. The budget was approved with community support.

Key Outcomes

• Oversized Vehicle Ordinance: Approved on third reading as amended (vote: 5-3, with Seagrave, Labourne, Moody voting no). Amendment to remove all size thresholds failed.
• Solid Waste Fee Schedule: Approved on second reading with a substitute correcting a math error (Moody voting no).
• Business Park Rezoning: Approved on second reading (Moody voting no).
• Water and Sewer Rates: Approved on second reading (Moody voting no).
• Data Center Moratorium: Defeated (1-8).
• City Budget (Item 11): Approved on second reading with an amendment to add a Community Service Officer using council discretionary funds.
• Cheyenne Regional Airport Board Budget: Adopted.
• Yellowstone Road and Del Range Project (28A): Professional services agreement with Sunrise Engineering approved in amount not to exceed $384,100.
• Election of Vice President: Dr. Emmons was elected to the vice presidency of the council over objections about representation from the same ward as the president (vote 6-2, with Aldridge and Moody voting no).