Supervisors discuss six-month data center moratorium, plan to vote on resolution at next meeting
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About two weeks after the Marshall County Zoning Commission unanimously recommended a six-month moratorium on data center construction, the Board of Supervisors took up the matter during their regular meeting on Wednesday morning and seemed to reach a consensus about passing a formal resolution at the next meeting on Sept. 23.
As the conversation kicked off, Board Chairman Jarret Heil urged members of the public in attendance to keep their remarks focused on the proposed moratorium rather than the wider topic of data centers in general, and Zoning Administrator Tyler Kelley provided a brief recap of the prior Zoning Commission meeting while noting that the term "large scale" had been removed from the document.
"At this time, size wasn't something that needed to be brought into the conversation when it comes to the moratorium," Kelley said.
One lingering question that also came up at the city level was whether the moratorium needed to be adopted as a resolution, which requires a single reading and no official publication, or an ordinance, which requires three readings unless subsequent readings are waived and official publication before it can take effect. Kelley told the board that the Zoning Commission would plan to hold three work sessions on a new data center ordinance -- Oct. 20, Nov. 17 and Dec. 22 -- with a draft ordinance prepared for public discussion on Jan. 19, 2027 and a recommendation vote from the commission on Feb. 16.
The proposed moratorium document does allow the supervisors to extend it by 60 days if more time is needed. County Attorney Jordan Gaffney then explained that the board could either go the ordinance or resolution route depending on its preference -- a resolution would go into effect immediately, while the ordinance requires the aforementioned readings and publication. Supervisor Christian Goodman asked if there would be any practical difference from a legal enforcement standpoint, and Gaffney responded that he didn't believe so as he has seen communities and counties across the state utilize both methods.
County Auditor/Recorder Nan Benson also warned of a potential gap in ordinance numbers down the road since the moratorium would only be temporary, and Gaffney ultimately recommended going with a resolution.
"I think it's the cleanest way, and it starts the clock sooner," he said.
Goodman then asked Kelley if the county has been approached by any potential data center developer to this point, and he said they had not had any communications regarding projects in the county's unincorporated areas thus far. Heil reiterated that as the board chairman, he has not been contacted, and neither has anyone in the auditor/recorder's office.
"I think it's important for the public to know that a lot of all this talk of the data centers is surrounding Marshalltown or areas that Marshalltown has an interest in for an annexation plan," Heil said. "Part of you might be thinking, 'Well, what's the county really doing?' Well, we don't want to get caught flat-footed, so that's the main thing. That's why we're doing this so that we can be ahead of the game. That way, when developers do arise here in Marshall County, or maybe they won't, I don't know, but let's not get caught behind the game with what's going on currently in Iowa on data centers... We're not trying to do anything to cater to a particular developer, but we're trying to develop a good plan that works for Marshall County."
Benson added, in response to a question from Supervisor Carol Hibbs, that the county has not seen any formal paperwork regarding annexation yet, and Kelley noted that he and City of Marshalltown Zoning Administrator Clayton Ender have been in close contact throughout this process to ensure their regulations are in sync.
As the floor was opened up to public comments, Benson read a written letter from Maggie Valentine in support of the moratorium, and County Engineer Paul Geilenfeldt wondered if the resolution would affect "temporary data centers" that go up next to substations in portable buildings. Kelley replied that they would exclude server rooms typically found in government buildings or large manufacturers.
Currently, there are two Bitcoin mining facilities already operational in Marshall County -- one near St. Anthony and another on Underwood Avenue previously approved through conditional use permits -- and Kelley noted that the moratorium would also apply to those types of structures as well, but only on new construction. Annie Grieshop told the board that based on information she had collected from around the state, there were more resolutions than ordinances, and she advised them to be clear about when the moratorium starts and ends to avoid a situation like the one in the city of Marshalltown, where the 4-month moratorium clock started on July 13 but did not actually take effect until Aug. 27 due to the ordinance process.
Harold Lanning praised the board for being proactive and "ahead of the game."
"I'm not pro-data center or opposed to them. I just want to know what they're all about and what the rules and regulations are that they have to live by like the rest of us have to. So I appreciate your forethought and process of getting it done and getting it done ahead of time. Thank you," he said.
Les Davis also thanked the board for starting the moratorium process, and with no further public comments, the board reached a consensus on cleaning up the language in support of a resolution and taking it up for formal action at the next meeting on Sept. 23. The resolution would remain in place until March 23, 2027 unless it is extended or shortened.
During the public comment period at the end of the meeting, Ramon Reyes of rural Union asked that the current two-mile setback from the Iowa River for renewable energy projects remain in place, and Heil noted that there has not been any action on an updated ordinance thus far. Kelley added that a Zoning Commission draft ordinance work session and review of the comments received to this point is set for Sept. 29 at 9 a.m. at the courthouse meeting room. He encouraged the public to attend.
In other business, the board:
Approved the consent agenda as listed.
Acknowledged the receipt of the actuary report regarding the Marshall County Employee Health and Dental plan for the fiscal year ending June 30, 2026.
Approved the Eide Bailly statement of work for Fiscal Year 2026 audit and authorized the auditor/recorder to sign.
Approved the EMC Insurance coverage/reservation of rights letter and authorized the auditor/recorder to sign.
Approved the second reading of a proposed ordinance regarding maximum hourly rates for court-appointed personnel fees.
Approved an agreement for the use of Marshall County grounds by Oktemberfest Inc. pending the issuance of insurance.
Approved the purchase of a temporary easement from the Daniel Glenn Anderson Revocable Trust in the amount of $700 for work on the 260th Street/Ridge Road area.