City council passes second and third readings of data center moratorium, hears from prospective developer
The Marshalltown City Council passed the second and third readings of a four-month data center moratorium. During the same meeting, Swarm Systems presented a proposal for a data center in the Edgewood Industrial Park, seeking to purchase land for due diligence rather than immediate approval, expressing support for the moratorium and pledging to adhere to future regulations. Public commenters largely supported the moratorium, while some urged proactive use of the pause to develop clear zoning ordinances.
The Marshalltown City Council held an eventful meeting where the second and third readings of a four-month data center moratorium officially passed. The council also heard a presentation from Amir Atefi, CEO of Swarm Systems, a prospective developer proposing a data center project in the city's Edgewood Industrial Park. Despite the moratorium's passage, the developer was allowed to present, though motions to discuss a potential land sale in open and closed sessions failed due to lack of supermajority.
Public commenters largely supported the moratorium, which is set to take effect on August 27, raising questions about the legality of its effective start and end dates. City Zoning Administrator Clayton Ender clarified that while an initial motion in July was thought to be sufficient, legal counsel advised going through the full ordinance reading process. Several residents living near potential development sites expressed concerns, while Marshalltown Area Chamber of Commerce President/CEO John Hall, an initial opponent, urged passing the moratorium quickly to move towards drafting new regulations.
Swarm Systems, partnered with U R Energy CEO Jarrod Ulery, presented a proposal to build a 125,000-square-foot AI inference data center on 21 acres of city-owned land. Atefi emphasized that the company was not seeking immediate construction approval or tax incentives, but rather an option to purchase land to conduct due diligence on power, environmental, and civil aspects, aligning with any future city regulations. He positioned Swarm Systems' approach as responsible, addressing common concerns about water and power usage with closed-loop systems and reliance on the existing electrical grid, projecting minimal water use and compliance with noise standards.
Atefi also committed to generating 50-60 high-paying local jobs, partnering with Marshalltown Community College for training programs, and investing $345 million into the community without tax incentives, generating an estimated $3 million in annual property tax revenue. He pledged to be a good neighbor, emphasizing buffers for nearby residential areas and contributing to local amenities, stating the company supports the moratorium as a proactive and responsible process.