Palo city council advances Google data center ordinance

Palo city council advances Google data center ordinance

News ClipKCRG·Palo, Linn County, IA·6/2/2026

The Palo City Council approved a data center ordinance on its first reading despite significant public opposition to a proposed Google data center. Residents raised concerns primarily about the project's water and electricity usage, arguing the ordinance lacked specific requirements for environmental studies or an incentive package. The ordinance, which will govern future data center operations, still requires two more votes for full adoption.

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Google
Gov: Palo City Council, Palo Planning and Zoning Commission, Linn County

The Palo City Council voted to approve a data center ordinance during its first reading at a recent meeting, proceeding despite strong opposition from more than a dozen residents. The ordinance is intended to establish guidelines for the operation of future data centers in the city, addressing issues such as noise, road usage, and water consumption.

Most speakers urged the council to reject the ordinance, linking it to a proposed Google data center project. This project, which would be located outside current city limits but planned for annexation, is intended to leverage proximity to a restarting nuclear power plant for consistent power. Critics expressed significant concerns about the potential water and electricity demands of such a large-scale facility in the small Linn County community, with one speaker emphasizing the necessity of a water study and another calling for a more specific ordinance.

The approved ordinance mirrors recommendations from the Palo Planning and Zoning Commission and does not mandate a water usage study or outline an incentive package for the city. This contrasts with Linn County's data center ordinance, which includes water usage rules, leading Google to halt discussions with the county previously. If the Palo ordinance passes its remaining two votes, Google would primarily be subject to state-level water regulations.