Supervisors put the brakes on new data centers with year-long moratorium
The Lee County Board of Supervisors unanimously approved a one-year moratorium on new data center construction. This pause allows the county to draft a comprehensive ordinance to regulate data centers, addressing concerns over infrastructure, environmental impact, electricity, and water usage. The county currently lacks a zoning ordinance to control such developments outside city limits.
The Lee County Board of Supervisors in Iowa has unanimously enacted a one-year moratorium on the construction of new data centers. This decision comes as county leaders seek to draft an ordinance that will dictate how data centers are allowed to operate, addressing potential negative consequences for the county and its residents.
The supervisors have been discussing the need for a moratorium to allow time to research the topic, seek legal advice, and establish guidelines for data center construction and operations. Concerns have been raised regarding their potential impacts on water supply, electricity usage, and noise pollution, mirroring issues seen in other counties like Henry and Des Moines, which have also passed data center moratoriums. Due to the lack of a countywide zoning ordinance, Lee County currently lacks legal authority to halt construction in most unincorporated areas.
During discussions, District 4 Supervisor Garry Seyb initially moved to table the vote, seeking clearer definitions and statutory authority within the resolution, citing concerns about broad wording that might encompass unintended facilities. However, Lee County Attorney Ross Braden and other supervisors expressed confidence in the current language, arguing it provided necessary flexibility. An attendee also suggested capping electricity and water usage, which Board Chair Ginger Knisley noted would be addressed in the forthcoming ordinance, potentially as an addendum to the county's existing solar, wind, and battery storage ordinance.
Despite the moratorium on new projects, current developments by companies like Octopus Investments, LLC, which is developing a potential bitcoin mining operation on the Burlington Hill property, and GoSolar, LLC, working on a large solar installation that could support data centers in Green Bay Bottoms, are understood to be underway. Dustin Wolgemuth of Octopus Investments, a Fort Madison resident, spoke at the meeting, emphasizing the utilization of existing power infrastructure and the potential for over $100 million in investment, while also stressing a commitment to responsible resource use.