a company Plans to build new data center in North Denver He will no longer seek a $9 million tax break from the city after the proposed deal raised questions among City Council members about water and energy use.

CoreSite will still build Data center in Elyria-Swansea neighborhood — but without signing the tax revenue refund agreement with the city, company spokeswoman Megan Ruszkowski confirmed in an email Wednesday. The statement left open the possibility that the company could seek support from the city for future phases of the project.

The Denver-based company applied to the Denver Economic Development and Opportunities (DEDO) office for incentives. An agreement was negotiated that would return half of all sales and use taxes associated with the new data center (up to $9 million) to CoreSite.

“While this will have a significant impact on the financing of the project, CoreSite will move forward with phase 1 of the project,” Ruszkowski said. “CoreSite believes this will provide financial/economic benefits to both the community and the city.”

DEDO representatives made the offer a council committee in august And They were greeted with more than an hour of questions about the project’s impacts about the environment and the surrounding community. Council members questioned whether the city should encourage a project that would use large amounts of water and energy amid efforts to improve the efficiency of the city’s water and energy use.

When completed, the facility’s power needs will be between 65 and 75 megawatts maximum; This is enough energy to power approximately 82,500 homes. The facility will also draw a maximum of 805,000 gallons of water per day to cool its systems. That’s the same as the average daily indoor water use of 16,100 Denverites.

However, company representatives have previously said that the facility’s average daily water and electricity usage is expected to be well below maximum values. A typical CoreSite data center uses less than 50% of full capacity and has never had customers using a facility’s full capacity.

Council members on the Business, Arts, Workforce, Climate and Aviation Services Committee twice postponed a vote on the agreement, which requires full council approval.

CoreSite will now focus on finalizing the site development plan, obtaining the construction permit and building the first phase of the project, Ruszkowski said. The company will open in 2022 at 5050 Race St. near the National Western Center. He bought the property at.