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We’ve spent months hearing every reason to ban data centers. Developers know where the community stands on water, power, noise and AI as a whole. I believe AI companies need regulation.
But recent council votes suggest the majority is headed toward regulating data centers, not prohibiting them. So why aren’t we having an equally serious conversation about how Marshalltown gets paid? Property taxes alone won’t cut it, since Iowa exempts much of the equipment that makes up most of a data center’s value.
Here in Iowa, Waukee’s agreement with Apple calls for $500,000 per data center building per year for public improvements, up to $100 million. Virginia now charges data centers 1.1 cents per kilowatt hour, but that money goes to the state’s general fund, not the host communities. I believe something like it is coming to Iowa. If Marshalltown doesn’t get there first, the state will take it, and even then they probably still will.
One approach is a payment tied to electricity use. It grows as the facility grows and gives the community a real read on how many resources these plants draw. That opens the door to putting a governor on energy and water use. We already do something similar with JBS, where wastewater limits at the treatment plant, under DNR permits, effectively cap how many hogs they can run.
The heyday of abatements, incentives and infrastructure assistance for data center developers is over, or I sure hope it is at city hall. Council should lay down base ground rules like any other project. I’m not suggesting we lock Marshalltown into an incentive box. Build the box, but leave the lid off, and let it grow with the investment and jobs. Some negotiations will happen in private out of necessity, but at least everyone would know the baseline rules.
Energy, water, infrastructure and noise still need real answers, and nearby neighbors should be compensated. But the larger fight over AI belongs in Des Moines and Washington, not with seven members of the city council and Planning and Zoning.
Developers and residents need to know the whole playing field now, including what Marshalltown expects in return. That’s money for new schools, libraries, parks, streets, and wasteful downtown projects like welcome archways with abandoned hospitals in view.
Gladly, I’m not one of the elected officials making these decisions. But shouldn’t we be talking about how Marshalltown gets paid while we regulate them?