McGregor city council approves land sale for data center project amid resident water concerns
The McGregor City Council has approved the sale of 499 acres of land for Project Merlin, a proposed $400 million data center by AI company Galaxy. Residents raised concerns about the swift decision, potential financial impacts, and the data center's water usage, despite Galaxy's explanation of a closed-loop cooling system and plans for private infrastructure development.
The McGregor City Council has given its approval for the sale of 499 acres of land to facilitate the development of Project Merlin, a proposed data center representing an investment exceeding $400 million. The decision was made during a special meeting this week.
Residents, including Joel Hamilton and Jerry Sanchez, voiced significant concerns regarding the approval. Hamilton highlighted a perceived lack of public input and expressed worry about the data center's substantial water usage and potential depletion of local water sources. Sanchez added concerns about the financial impact the project could have on local residents, particularly concerning bills.
Galaxy, identified as the AI company behind Project Merlin, estimates the creation of over 30 full-time jobs with average annual salaries exceeding $60,000. The company also committed to funding its own infrastructure, which includes necessary power upgrades and the construction of a new electrical substation. Addressing water concerns, Galaxy explained that each building would utilize approximately 3,000 gallons of water daily via a closed-loop cooling system that recirculates water. Furthermore, water usage will be contractually capped, and any additional water infrastructure will be privately funded.