Public hearing for proposed Palo data center ordinance draws vocal critics

Public hearing for proposed Palo data center ordinance draws vocal critics

News ClipCorridor Business Journal·Palo, Linn County, IA·6/2/2026

A public hearing for a proposed data center ordinance in Palo, Iowa, drew significant opposition, primarily concerning water usage and the general nature of the regulations. Despite public criticism, the Palo City Council unanimously approved the first reading of the ordinance, which aims to create a new zoning district for large-scale data centers. Two more readings are scheduled before the ordinance can become law.

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Gov: Palo City Officials, Linn County, Iowa Department of Natural Resources, Fairfax Mayor, Fairfax City Council

Palo city officials held a public hearing for a proposed data center ordinance, emphasizing it was a general regulatory framework, not specifically tied to a potential Google data center project. However, approximately 150 attendees, including over 40 speakers, largely voiced opposition during the nearly three-hour meeting at the Palo Community Center. Despite the overwhelming criticism, the city council unanimously approved the first reading of the ordinance, which seeks to establish an exclusive zoning district for large-scale data center developments within Palo.

Key concerns among residents and environmental advocates centered on water usage and potential contamination. Wally Taylor, legal chair of the Sierra Club's Iowa chapter, criticized the proposed ordinance for not requiring a water study, unlike Linn County's recently approved regulations, and expressed distrust in the Iowa Department of Natural Resources' oversight of water withdrawal permits. Residents like Deb Shields of Covington and Jennifer Leaven, a local landowner, echoed these worries, highlighting the impact on shared wells and the lack of state-level disclosure requirements for data center water consumption. They advocated for more stringent, proactive water management policies, drawing comparisons to Allamakee County's ordinance requiring closed-loop cooling systems.

Further opposition came from Fairfax Mayor Jo Ann Beer and council member Cindy Anderson, who warned Palo about the negative impacts of ongoing data center construction in Cedar Rapids, including heavy traffic and minimal tax benefits for their community. They urged Palo to establish stronger regulations on traffic and road use. Many speakers also argued that the ordinance's general language, which defers specific restrictions to post-approval development agreements, would effectively remove meaningful public oversight, challenging the economic benefits touted by other cities with data centers. Local experts, such as Doug Seavey, offered advice on waterless cooling technologies, suggesting Palo set firm boundaries for developers like Google.

Two additional readings are required for the ordinance to be enacted, scheduled for June 15 and June 22. The strong public opposition and calls for more specific, protective regulations indicate continued debate surrounding the ordinance.