Council votes down data center moratorium
The Marshalltown City Council voted against implementing a proposed temporary moratorium on data center construction following a lengthy debate. While some council members advocated for a pause to develop specific zoning regulations and address concerns about resource consumption, opponents argued a moratorium would deter investment and economic growth. Ultimately, the council decided to direct staff to work on development agreements and have the Planning and Zoning Commission develop ordinances without a moratorium in place.
The Marshalltown City Council rejected a proposed temporary moratorium on data center construction after an extended discussion at its regular meeting. Councilor Marco Yepez-Gomez initiated the proposal, citing inquiries about potential data center development in Marshalltown and advocating for a proactive approach to establish specific regulations, including a potential ban on centers exceeding 10 megawatts. He noted that existing zoning ordinances classify data centers merely as "other utilities" and highlighted similar moratoriums in Story, Woodbury, and Madison counties.
Opposing the moratorium, public comments from residents Bob Higgins and Tom Deimerly, along with statements from Marshalltown Area Chamber of Commerce President/CEO John Hall and Alliant Energy's Kiley Miller, emphasized the economic benefits, job creation, and tax revenue potential of data centers. They also noted Alliant Energy's local infrastructure expansion, which could support such projects, arguing that a moratorium would signal the city was closed to investment. Jarrod Ulery, identifying as a data center developer, also questioned the need for a moratorium and the councilor's understanding of the industry.
Concerns were raised by councilors regarding water usage, energy capacity, and quality of life impacts, with some advocating for robust regulations before development. However, Mayor Pro-Tem Jeff Schneider and Mayor Mike Ladehoff, through written remarks, both expressed strong opposition to a moratorium, suggesting that specific development agreements, similar to the "Cedar Rapids model," would be a better approach.
After several motions failed, the council ultimately voted 6-1 to direct city staff to collaborate with the Chamber of Commerce on establishing development agreements for future data center projects. They also moved to forward the matter to the Planning and Zoning Commission to develop specific ordinances for data centers, but without enacting a temporary moratorium.