Palo commission recommends new regulations for Google data center

Google, which initially planned to construct a data center in Linn County, Iowa, has pivoted its development plans to the city of Palo due to Linn County's stricter demands. Linn County had proposed an ordinance requiring Google to conduct a water study, sign a water usage agreement allowing county oversight, and pay $3 million per building in incentives—six times what Google pays Cedar Rapids for a similar facility. In contrast, Palo's Planning and Zoning Commission recently voted to recommend a new ordinance for Google's data center that offers a "sweeter deal." This ordinance largely defers to state-level water permitting by the Iowa Department of Natural Resources, omitting local water usage studies or agreements. Furthermore, the financial incentive agreement between Palo and Google is not explicitly detailed in the proposed ordinance, unlike Linn County's specific payment demand. The Palo ordinance also provides less transparency regarding records compared to Linn County's explicit demand for fully open records, barring only trade secrets. The proposed data center location is near the Duane Arnold Nuclear Power Facility.