Palo approves final reading of data center ordinance; residents continue to voice concerns

Palo approves final reading of data center ordinance; residents continue to voice concerns

News ClipCorridor Business Journal·Palo, Linn County, IA·7/21/2026

The Palo City Council approved the final reading of an ordinance establishing a new zoning classification and development standards for data centers. Residents continued to voice strong concerns about the ordinance's effectiveness and potential impacts, with some advocating for a moratorium. A proposed Google data center in the Palo area is central to the city's decision to create this ordinance.

zoningoppositionenvironmentalgovernmentwatermoratorium
Google
Gov: Palo City Council, Iowa Department of Natural Resources, Linn County, Palo Planning and Zoning Commission

The Palo City Council unanimously approved the third and final reading of a new ordinance establishing a specific zoning classification and baseline development standards for data centers within Palo city limits. The ordinance, passed on a 4-1 vote, addresses key concerns such as setbacks, application requirements, and impacts from noise, traffic, and water usage, although water regulation defers to state authorities.

The approval comes amidst ongoing public concern, with several residents arguing the ordinance doesn't adequately protect the city's interests or is difficult to enforce. Shelly Jacobus, a Palo resident, even called for a six-month moratorium on specific data center proposals. The ordinance's development follows Google's decision to pursue annexation of a proposed data center site into Palo city limits, shifting negotiations from Linn County, which had previously developed its own comprehensive data center ordinance.

City officials, including council member Eric Van Kerckhove, emphasized that the ordinance empowers Palo to control the terms of any future data center project, including economic development agreements, an opportunity not afforded if the project remained in Linn County. While not explicitly endorsing Google's project, council members like Taylor Burgin and Jen Welton supported the ordinance as a necessary framework, with Ms. Welton suggesting resident concerns could be addressed in a formal development agreement.

Mayor Bryan Busch confirmed that discussions with Google are ongoing, but no firm timeline exists. If Google decides to proceed, it would need to initiate the annexation and rezoning applications through the city's Planning and Zoning Commission before a public meeting. Resident Erin Jacobson indicated plans to file a petition for judicial review following the council's vote, reflecting continued opposition.