Sioux County’s Proposed Data Center Rules go to Final Reading

(Community First Broadcasting Staff Photo)

Orange City, Iowa (Sioux County Radio) — The Sioux County Board of Supervisors advanced proposed data center regulations on another 4-1 vote Tuesday, Oct. 13th, following public questions about enforcement, electricity costs, agricultural impacts, and protections for neighboring properties.

Supervisor Dan Altena again cast the lone opposing vote, matching the board’s Sept. 29th decision. The amendment to County Ordinance No. 1 now moves to a third and final reading scheduled for Oct. 27th at 9 a.m.

County Zoning Director Shane Walter said the proposed language has not changed since the first reading. He explained that while the county already has a conditional-use process for industrial projects, additional requirements were developed to address the unique demands of data centers.

Oversight, Utilities, and Neighbor Protections

Questions during Tuesday’s hearing included who would verify compliance and whether penalties would be substantial enough to discourage violations.

Walter said independent studies would be required before a facility could open, with periodic reviews afterward. He said the zoning director would be responsible for ensuring oversight occurs and that a separate fine schedule would be established at a later date.

The discussion also addressed the potential to shut down an operation that failed to comply with required agreements.

On electricity usage, Walter pointed to the proposed 25-megawatt limit and said existing, underutilized infrastructure at the former Bison project site near Hull could help spread costs among more users. He added that applicants would be responsible for paying for any required infrastructure improvements.

Other protections discussed include closed-loop cooling systems, setbacks, and noise limits measured at neighboring homes rather than at the data center itself. Walter added that technological improvements could reduce resource demands over time.

The proposal also includes a community betterment fund. Walter said the initial contribution amount and future payment structure would be determined later.

Altena Cites Residents’ Reservations

Altena acknowledged the work that had gone into the proposed rules and PathOne’s efforts to explain its plans through public meetings. However, he said residents who had contacted him remained uneasy about bringing a data center to the county.

Altena later emphasized that he recognizes the value of technology in agriculture and law enforcement. His concern, he said, was residents’ reluctance to be among the first nearby communities to host a facility of this type.

He also rejected the suggestion that Sioux County would lose access to data services without a local data center.

Agriculture and the Facility’s Lifespan

Students from MOC-Floyd Valley’s FFA attended as part of their preparation for an agricultural issues contest. Their questions prompted discussion about how data processing relates to farming and how the proposed rules would protect agricultural resources.

Supervisor Craig Hoftyzer said he was speaking about data centers generally, rather than the specific local proposal. He pointed to precision spraying technology that identifies individual weeds instead of treating an entire field.

He also described combine technology that uses cameras and satellite imagery to anticipate changing crop conditions.

Walter said the county’s approach seeks to balance agricultural preservation with industries that support the local economy.

Questions about decommissioning also led to a discussion of how long a data center could operate. After Walter offered a tentative estimate of 10 to 20 years, PathOne representative Gyles Uhlenhopp said the building itself could have a significantly longer life than the equipment inside it.

Uhlenhopp also said smaller data centers have existed throughout the internet’s history, distinguishing them from the much larger facilities receiving national attention.

Final Reading Scheduled Oct. 27th

Walter said changes could still be made before final approval, but revised language would need to return to the Planning and Zoning Commission for review and recommendation.

Tuesday’s vote advanced the zoning amendment only and did not approve any specific data center project. Walter said PathOne intends to submit an application if the ordinance is ultimately approved.

The final reading is scheduled for Oct. 27th at 9 a.m. If approved, the amendment would take effect upon publication.

The proposed ordinance is available for the public to review at siouxcounty.org.

Sioux County’s data center moratorium in unincorporated areas remains in effect.

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