(SCR and KUOO) — PathOne Data Centers, the company exploring a potential data center near Hull in Sioux County, is also considering a facility in Estherville.
Company representative Gyles Uhlenhopp addressed the Estherville City Council Monday evening, October 19, outlining the possibility of a facility of up to 25 megawatts on eight to 12 acres in an industrial park on the city’s south side.
The discussion comes as Sioux County supervisors prepare for the third and final reading of the county’s proposed data center ordinance next Tuesday, October 27.
Estherville Discussions in Early Stages
Uhlenhopp, a Windom, Minnesota, native, said PathOne looks for industrially zoned land near an electrical substation with available power that is not currently being used. He said Estherville offers that combination, but emphasized that discussions remain preliminary.
“This is the very early on in the process. That’s where I wanted to come in and share a little bit about how we build projects and see if there is a path to a project here,” Uhlenhopp said.
He said the community would first need to establish its rules and identify what it would and would not want in a development before the company determines whether to proceed.
Power Supply and Infrastructure Costs
Iowa Lakes Electric Cooperative would supply electricity to the potential facility. President and CEO Ryan Craig said PathOne would be responsible for infrastructure needed to serve the development, including a substation and any necessary transmission upgrades.
Craig said appropriate studies would be needed to confirm capacity and ensure the project would not negatively affect the community. He also described a potential benefit for cooperative members.
“The one thing I would say that, if structured properly, that there is a potential for rate stability, meaning we would be selling a lot more kilowatt hours and we’d be able to spread fixed cost over those kilowatt hour sales,” Craig said.
Community Input on Design and Local Projects
Uhlenhopp said another step would be forming a Community Advisory Council, which could provide input on the facility’s appearance and other aspects of the development.
The group could also help identify potential community projects for the company’s PathOne Foundation to support. Uhlenhopp said those investments would give residents something tangible beyond the project’s tax contributions.
“Sometimes community members don’t always see taxation so, we like to go build something physical, right, that they can see, feel, touch. And we’ve done that in a variety of ways, whether it’s donating ground for certain projects or helping build. But the point is we’d love feedback from a community advisory council to say, here’s exactly what Estherville needs,” Uhlenhopp said.
Estherville Begins Reviewing City Rules
City Administrator Penny Clayton said Estherville’s Planning and Zoning Commission will begin reviewing possible data center regulations Thursday, October 22.
City staff has gathered approximately half a dozen examples of Iowa county ordinances and prepared recommendations and alternatives for commissioners to consider. Estherville’s process, however, would establish city regulations through its Planning and Zoning Commission and City Council.
“We’re hopeful that the commission is able to work their way through that over the next few weeks and that they can make a recommendation to city council,” Clayton said.
Clayton said a public hearing and council adoption would be needed as the city establishes its rules. She also recommended that the city and company approve a developer’s agreement before construction begins.
Thursday’s Planning and Zoning Commission meeting is scheduled for 4:30 p.m. in the council chambers at Estherville City Hall.
Sioux County’s Final Reading Set for October 27
PathOne has also been exploring a potential data center at the former Bison project site near Hull, where an underused electrical substation has been part of the discussion.
Sioux County’s proposed ordinance would govern data centers in unincorporated areas of the county. Proposed requirements include a 25-megawatt limit per site, independent studies addressing power, water, and noise, cooling standards, and developer responsibility for necessary utility infrastructure.
The ordinance advanced on 4–1 votes during its first two readings on September 29 and October 13. Supervisor Dan Altena cast the opposing vote both times.
The third and final reading is scheduled for Tuesday, October 27. Adoption would establish county regulations but would not itself approve a specific data center.
Estherville’s consideration of city regulations is a separate process from the Sioux County ordinance.
