i9 investigation: Linn County discusses Google’s shift to Palo for data center project

Google has revised its data center development strategy in Iowa, opting to pursue a project with the city of Palo instead of its original plan for rural Linn County. The proposed data center is slated for an area south of the Duane Arnold Nuclear Power Plant, which is in the process of restarting operations. This move has significant financial implications, as the city of Palo stands to gain substantial tax benefits and incentives from Google, a sum previously sought by Linn County. Negotiations between Google and Linn County had been ongoing for months. According to new documents, Google offered the county $1 million per building annually, an amount exceeding its prior agreements with Cedar Rapids. However, Linn County Supervisor Sami Scheetz indicated the county sought over $3 million per building and refused to compromise on water protection ordinances, which aimed to safeguard the Cedar River and other natural resources. Scheetz noted that Google submitted another counter-offer after the county's firm stance on water protections, suggesting the ordinance was manageable for the company. The reasons for Google's definitive shift to Palo remain unclear, though Scheetz speculated that the county's price demands might have played a role. Freedom of Information Act requests have been filed to uncover further communications, and the Palo City Council has declined interview requests.