Google seeks less restrictive regulations for data center in Palo, Iowa
Google is pursuing a data center project near Palo, Iowa, and is seeking to annex its site into the small town to bypass stricter Linn County data center regulations. The Palo Planning and Zoning Commission approved a less restrictive zoning ordinance, leading to resident concerns about water usage, community contributions, and transparency. The Palo City Council has yet to approve the plan.
Google is advancing plans for a $1 billion data center complex near the Duane Arnold nuclear power plant in Iowa, aiming to expand its AI technology infrastructure. Initially engaging with Linn County, Google sought to modify a proposed county ordinance that mandated comprehensive water studies, water use agreements, and significant annual community betterment payments ($3.25 million per building, per year), along with public records access. Google rejected many of these terms, offering a reduced betterment contribution and no commitment to open records.
After Linn County upheld its ordinance, Google shifted its focus to the adjacent small town of Palo, hoping to annex the site to secure more favorable terms. The Palo Planning and Zoning Commission subsequently approved a data center zoning ordinance described as less restrictive than Linn County's, which residents like Ann Brown criticized, citing concerns about the data center's projected 14 million gallons of daily water usage from the Cedar River and the absence of clear community benefit agreements.
While Palo Mayor Bryan Busch argues that state law governs water needs and economic development agreements are forthcoming, opinion editor Todd Dorman of The Gazette urged Palo officials to leverage their position and implement stronger protective measures for residents and water resources, highlighting the national trend of data center-related opposition. The Palo City Council has not yet discussed or approved the plan, indicating the project's future in Palo remains pending.