Marshalltown city council reverses course, OKs four-month data center moratorium
The Marshalltown City Council voted 5-2 to enact a four-month data center moratorium, reversing an earlier decision. This pause allows time for new regulations and restrictions to be developed by the Planning and Zoning Commission and city staff. Concerns about power and water usage, as well as the city's control over data center developments, were central to the discussion.
The Marshalltown City Council recently reversed an earlier 4-3 vote, approving a four-month moratorium on data center development with a 5-2 vote. The decision follows extensive discussion and aims to provide time for the city to establish new regulations and restrictions for future data center projects before applications can be approved.
Assistant Housing and Community Development Director Clayton Ender informed the council that current zoning code does not specifically mention data centers, classifying them as major utilities eligible for special use permits across all zoning districts, largely bypassing direct council approval unless tax incentives or land annexations are sought. Councilors, including Marco Yepez-Gomez and Mark Mitchell, expressed concerns about data centers' high power and water consumption, citing examples from Cedar Rapids and Florida, and questioned the long-term benefits of such projects for Marshalltown residents.
Despite opposition from Councilor Jeff Schneider, who emphasized the importance of quick action for economic development, the council moved forward. Planning and Zoning Commission Chairman Jon Boston confirmed the commission is already planning to address data center regulations. The council's action includes directing staff to work with the city attorney and the Marshalltown Area Chamber of Commerce to amend the zoning code to include specifications on land use, infrastructure capacity, setbacks, noise, and environmental standards.
Public comments during the meeting largely favored the moratorium, with residents questioning the value data centers bring and advocating for stricter regulations to protect community interests. The approved timeline includes a formal moratorium adoption in July, followed by P&Z work sessions, public roundtables, and multiple city council readings for new regulations extending into November.