i9 investigation: Documents show Palo negotiated with Google while publicly downplaying involvement

i9 investigation: Documents show Palo negotiated with Google while publicly downplaying involvement

News ClipKCRG·Palo, Linn County, IA·4/4/2026

Documents reveal that Palo city leaders secretly negotiated with Google for months regarding a proposed data center annexation, despite publicly downplaying their involvement. This move blindsided Linn County, which had been negotiating with Google for the same project with stricter regulations. The annexation would provide Palo with significant tax revenue and enable Google to use an estimated 14 million gallons of water daily from the Cedar River.

zoninggovernmentwaterenvironmental
Google
Gov: Palo city leaders, Linn County supervisors, Linn County Board of Supervisors, Mayor Brian Busch
Documents obtained through an open records request by KCRG's i9 investigation expose that Palo city leaders engaged in months of negotiations with Google concerning a proposed data center annexation, contradicting public statements that suggested limited knowledge and involvement. Palo Mayor Brian Busch had publicly claimed the city was still learning about the project, even after Google's announcement a month prior and at a public information meeting. The revelations indicate that Palo approved an agreement in December for Google to cover the city's costs related to "Project Meridian," with legal services for a "Google Annexation Project" noted in January. City leaders reportedly began regular meetings with Google in February. This timeline shows Google was simultaneously discussing annexation with Palo while negotiating with Linn County. Linn County supervisors expressed feeling blindsided by Google's move to annex the proposed site to Palo, which would allow the tech giant to bypass the county's more stringent regulations and economic demands. The documents also reveal that Palo stands to gain over $1 million per building in additional tax revenue through the annexation. A significant environmental concern emerged regarding water usage, with the project estimated to consume 14 million gallons per day directly from the Cedar River, a detail Mayor Busch did not answer at a town hall meeting. Email exchanges confirm discussions on the city's water and sewer system had already begun.