Path One representative Gyles Uhlenhopp says Sioux County’s proposed data center regulations would still allow a financially viable project while establishing requirements he supports.
Speaking with Sioux County Radio after the September 29 public hearing, Uhlenhopp said he had reviewed the proposed ordinance amendment before supervisors approved its first reading on a 4–1 vote.
“It’s a very strong ordinance. And that’s exactly what I would encourage any county that’s exploring any type of data center ordinance to do. It’s very, very strong. And it makes sure that things are done properly.”
Supervisor Dan Altena cast the lone opposing vote, saying he would prefer waiting another year or two. Two additional readings remain before the amendment could receive final approval. The first-reading vote did not approve a specific data center project.
Smaller Facilities and Financial Viability
The proposed rules would limit a data center’s electrical design capacity to 25 megawatts per project site. Buildings and adjacent parcels under common control would be evaluated together, preventing developers from avoiding the limit by dividing a project into phases.
Asked whether a potential project would remain viable under those requirements, Uhlenhopp said it would. He said the company’s business model is designed to accommodate regulatory requirements while remaining profitable.
“Generally speaking, there’s a reason that big companies build big data centers because it’s easier to make money. We’re not interested in doing it the easy way. We want to do it the right way.”
Uhlenhopp said smaller data centers make less money and require innovation to operate profitably.
Responding to Water, Power, and Noise Concerns
Uhlenhopp identified water, power, and noise as the main concerns the company hears from residents in Sioux County and elsewhere. He said Path One’s approach is intended to address those concerns through smaller facilities designed for rural areas.
The draft would require water studies, utility verification, noise testing, and county-selected independent review of technical studies. It would also establish cooling requirements, drought-response measures, and developer responsibilities for infrastructure and emergency preparedness.
Uhlenhopp encouraged residents to examine the proposed language themselves.
“And I think this ordinance very clearly describes what can and cannot happen. And so I think everyone’s challenges are addressed in this ordinance, and I would encourage everyone to look at other ordinances that have been passed throughout the country, that this is a very sensible approach.”
Residents at the hearing raised questions about resource availability, enforcement, and the potential effects of multiple facilities. Uhlenhopp’s assessment reflects the company’s position on the proposal, which remains subject to additional county consideration.
Asked why Path One representatives were absent from the first open house at the potential project site, Uhlenhopp attributed it to a miscommunication. He said the landowners were representing the company and acknowledged the absence was an oversight.
Asked whether PathOne would consider more than one data center in Sioux County if the ordinance receives final approval, Uhlenhopp said the company is open to additional opportunities. He did not announce another project.
The ordinance amendment’s second reading is scheduled for October 13 at 9 a.m. at the Sioux County Courthouse in Orange City. If approved, a third and final reading would follow on October 27 at 9 a.m. The amendment would take effect upon publication following final approval.
View the full ordinance proposal here.
