Broken Bow City Council Considers Comprehensive Data Center Regulations
The Broken Bow City Council held a public hearing and first reading for a comprehensive ordinance (1317) to regulate data centers and digital asset mining facilities. The proposed regulations address concerns such as noise, water consumption, infrastructure costs, and foreign ownership, requiring conditional use permits and placing financial responsibility on operators. The council chose not to waive required readings, allowing for more public input as an existing six-month moratorium remains in effect.
The Broken Bow City Council is taking a formal look at a comprehensive set of data center regulations, Ordinance 1317, which aims to establish rules for high-density data processing facilities and digital asset mining operations. During its August 11 meeting, the council held a public hearing and completed the first reading of the ordinance, opting not to waive the three required readings to allow for additional review and public input.
Deputy City Clerk and Zoning Administrator Jacob Holcomb stated that the regulations have been in development since April, drawing from research into other communities' rules and addressing resident concerns. The proposed ordinance, recommended by the Broken Bow Planning Commission, would require a conditional use permit for facilities using 65 kilowatts of power or more. Key provisions include mandatory professional acoustical studies to ensure compliance with noise limits, a prohibition on high-consumption cooling systems in favor of closed-loop systems, and the requirement for operators to bear infrastructure upgrade costs.
Additionally, the ordinance mandates disclosure of foreign ownership, FBI background checks for significant owners, and a three-month utility deposit to protect ratepayers. Operators would also be responsible for decommissioning costs through a surety bond and could face emergency load curtailment by the city's electric department. City Administrator David Schmidt emphasized that these regulations provide necessary tools to protect Broken Bow's infrastructure and resources, particularly its water supply, as the city cannot legally enact an outright ban on data centers. A six-month moratorium on data center applications is currently in place while these permanent regulations are finalized.