Sand wants to end Iowa data center tax breaks. How his plan compares with Lahn's.

Democratic gubernatorial nominee Rob Sand has unveiled a comprehensive proposal to reform how Iowa regulates and subsidizes data centers. His plan includes eliminating state tax incentives for these facilities, mandating that companies cover 100% of associated utility infrastructure and energy demand costs, and increasing transparency through public disclosure of water and energy use, project size, and employment figures. Sand also advocates for prohibiting non-disclosure agreements in future data center deals, establishing public hearings, and implementing setback requirements to mitigate noise and lighting impacts.

His Republican counterpart, Zach Lahn, has also made data center regulation a central theme of his campaign, advocating for a statewide moratorium on new data centers until a comprehensive regulatory framework is established. Lahn has also questioned existing tax incentives, suggesting a need for statewide minimum standards that could prohibit property tax abatements while allowing local control over permitting decisions. Both candidates' proposals highlight the growing debate over the economic and environmental impacts of hyperscale data centers in Iowa.

The rapid expansion of data centers across Iowa has made their regulation a defining issue, with communities actively debating their impact on electricity demand, water usage, and land-use decisions. For instance, the Palo City Council recently approved an ordinance governing data center construction within city limits, spurred by public concerns. Concurrently, Linn County officials are considering the implications of data centers tied to the planned restart of the Duane Arnold Energy Center, amidst an 18-month moratorium on new data centers in unincorporated areas of the county. Major projects, including a QTS data center campus and Google's expressed interest in annexing land near Palo, continue to shape local discussions.