Palo city council advances data center ordinance over crowd opposition

Palo city council advances data center ordinance over crowd opposition

News ClipKCRG·Palo, Linn County, IA·7/14/2026

The Palo City Council voted 4-1 to advance a data center ordinance to its second reading, despite strong opposition from more than 100 residents. The council cited significant tax revenue as a key benefit, while residents questioned the adequacy of their five-week review.

zoningoppositiongovernmentenvironmental
Gov: Palo City Council, city of Cedar Rapids

The Palo City Council voted 4-1 to advance a data center ordinance during its second of three required readings, following a five-week pause in discussions. The meeting saw over 100 residents in attendance, most of whom opposed the data center project.

Council members indicated that their research, including visits to other Iowa data centers, found noise to not be an issue. Palo staff also consulted with the city of Cedar Rapids regarding water studies. Council member Van Kerckhove highlighted the significant financial impact and tax revenue benefits for Palo, stating it could "change that narrative" for the city.

However, Linn County resident Wally Taylor criticized the council's five-week review, suggesting they made no effort to modify the ordinance. Mayor Busch confirmed that, pending final ordinance approval, the next steps involve annexation and a development agreement, with specific land details near a nuclear plant yet to be finalized.