Sioux County passes one-year moratorium on data center construction

Sioux County passes one-year moratorium on data center construction

News ClipThe N'West Iowa REVIEW·Orange City, Sioux County, IA·6/22/2026

The Sioux County Board of Supervisors unanimously passed a one-year moratorium on data center construction in unincorporated areas to allow time to draft a specific ordinance. This decision was driven by concerns over environmental impacts, water and energy consumption, and the long-term economic benefits for the county. The board aims to create zoning language to protect farmland and regulate data center placement before the moratorium expires.

moratoriumzoningenvironmentalelectricitywatergovernment
Gov: Sioux County Board of Supervisors, Sioux County Zoning Director Shane Walter, Sioux County Attorney Tom Kunstle, Linn County Supervisors, City of Palo

The Sioux County Board of Supervisors in Orange City, Iowa, unanimously enacted a one-year moratorium on the construction of data centers and industrial battery storage facilities in unincorporated areas. The decision, made on Tuesday, aims to provide the county with sufficient time to draft a comprehensive ordinance specifically addressing data centers and their potential impacts.

County zoning director Shane Walter indicated that the board's proactive stance was prompted by increasing data center development in the region, citing a recently approved facility in neighboring Woodbury County. Supervisors, including Carl Vande Weerd, expressed significant concerns regarding the environmental implications of data centers, particularly water contamination, and the immense power and water consumption that could strain county resources. Walter highlighted that while data centers offer initial job creation and investment, their long-term operational employment is minimal.

County Attorney Tom Kunstle clarified that the moratorium's jurisdiction applies only to unincorporated Sioux County, acknowledging that facilities could still be developed within city limits, similar to how Google bypassed Linn County regulations by moving its project to land annexed by the city of Palo. Zoning Director Walter plans to present a draft ordinance within the year, which would primarily focus on limiting data center placement to protect farmland and include additional environmental criteria, drawing parallels to existing ordinances for solar and wind projects.