Divided Palo council approves second reading of data center ordinance
The Palo City Council approved the second reading of a data center ordinance, despite heated public opposition, to create a new zoning district for data centers near a proposed Google facility. This ordinance is a baseline protection document, separate from the project itself, which is still in preliminary discussions regarding annexation into the city. A third and final reading is scheduled for July 20.
The Palo City Council voted 4-1 to approve the second reading of a data center ordinance on July 13, amidst significant public feedback and opposition regarding a proposed Google data center. The meeting, attended by approximately 120 residents, focused on establishing a new exclusive zoning district for data centers in the city.
The proposed Google data center initially sought a site in unincorporated Linn County near the Duane Arnold Energy Center, but shifted its focus to potential annexation into Palo after Linn County adopted its own data center ordinance in February. Palo Mayor Bryan Busch clarified that the council's vote was solely on the ordinance, which provides "baseline protections" and addresses public concerns such as water, energy, traffic, noise, lighting, and farmland usage, and does not constitute approval for the data center project itself.
Community members voiced strong opposition, with Melissa Duffield of Cedar Rapids warning of potential litigation if the ordinance passed, and environmental advocate Wally Taylor criticizing the ordinance as inadequate. In contrast, State Senator Charlie McClintock praised the council's proactive approach, emphasizing the necessity of dealing with technology development. Council member Eric Van Kerckhove also shared insights from other Iowa communities like Waukee, where initial public opposition to an Apple data center eventually shifted to appreciation for its economic benefits.
The city faces two main scenarios: annexing the 545-acre site, which would give Palo regulatory control, tax revenue, and infrastructure improvements, or declining annexation, which would leave the project under Linn County's control with limited benefits for Palo. The third and final reading of the proposed ordinance is scheduled for July 20.