Iowa District 4 Representative Skyler Wheeler says Sioux County should remain open to the potential benefits of data center development, but supervisors should continue seeking firm answers before considering whether to lift the county’s moratorium.
Wheeler, who represents Lyon County and most of Sioux County in the Iowa House, attended most of PathOne’s nearly three-hour presentation Monday night at the Sioux County Courthouse. In a Facebook post and a follow-up interview with Sioux County Radio, Wheeler praised supervisors for giving the county time to study the issue while acknowledging questions remain about the proposed facility near Hull.
Wheeler said he does not want to overstep local officials, describing the proposal as a local issue that remains in the hands of the Sioux County Board of Supervisors. However, he said some of PathOne’s explanations have not yet gone far enough.
“Like I listed in my post, I mean, the things I’m hearing the most on it—it’s noise, it’s water. And then it’s- what exactly is going on with data centers and what kind of data is being captured in these places?”
Proposal Remains on Hold
Sioux County enacted a one-year moratorium in June on new data centers and industrial battery storage projects in unincorporated areas. The moratorium would have to be lifted before PathOne could move forward with its proposal at the former Bison Renewable Energy site near Hull.
PathOne has discussed developing a smaller data center with a capacity of up to 25 megawatts. The company says it would use existing electrical infrastructure and a closed-loop cooling system intended to reduce water consumption.
Wheeler said Northwest REC believes it can accommodate the proposed electrical load. He also said the location makes sense and that some businesses, including agriculture-related entities, have expressed interest in having a data center nearby.
However, he said the potential tax revenue and broader economic benefits must be weighed against concerns about noise, water consumption, nearby families and the type of information that could be stored at the facility.
“I think we can’t be ‘closed for business’ immediately but also can’t throw ourselves at the first dollar someone tempts us with,” Wheeler wrote in his Facebook post.
Wheeler described community opinion as mixed, saying some residents oppose the project, others remain skeptical, and some support it. He said that makes the issue anything but “cut-and-dry” for local officials.
Supervisors have stressed that adopting regulations for data centers would not constitute approval of PathOne’s proposal. Any future application would still be subject to county review and public hearings.
PathOne Absence Draws Criticism
PathOne announced three community open houses during Monday’s presentation, but no company representatives attended the first open house Wednesday. Representatives from H&D Properties, which owns the proposed site, were present.
At least one PathOne representative did attend Thursday’s open house. However, as of publication, the company had not responded to Sioux County Radio’s request for an explanation of why its representatives missed Wednesday’s event.
Wheeler called Wednesday’s absence a significant misstep for a company that is largely unfamiliar to Sioux County residents.
“If you’re not going to have at least one of your guys there for an open house that you advertise, it’s a bad look,” Wheeler said.
He credited PathOne for holding Monday’s public presentation and discussing the creation of a local advisory committee. Still, he said the company has little room for error as it attempts to gain the community’s confidence.
Wheeler said PathOne should explain its absence and continue meeting directly with residents and local news organizations.
He added that the moratorium gives supervisors time to proceed without making an immediate decision. Wheeler said he would be surprised if three supervisors were currently prepared to approve the project, although the board has not formally considered a PathOne application.
Statewide Questions Could Follow
Wheeler said data centers have become a political issue across the country and could receive attention during Iowa’s next legislative session. He said his research indicates more than 50 data centers are already operating in Iowa, with approximately 50 others under construction or in various planning stages.
While Wheeler does not favor a statewide prohibition, he said lawmakers could consider protections involving data security and who may own or access information stored at the facilities.
“I think there’s probably some guardrails, certainly, that could be entertained,” Wheeler said. “But this is not a case of, in my mind, it’s not a case of, ‘Oh, state’s got to pass more laws.’”
Wheeler said the debate may ultimately divide lawmakers more along geographic lines than party lines. Urban areas are more familiar with data centers and their potential jobs and revenue, while rural communities may have more questions because the developments remain relatively uncommon.
“You could have a rural versus urban breakdown, maybe less even than you have Republican versus Democrat on this issue,” Wheeler said.
For now, Wheeler said the decision remains where it belongs—with Sioux County officials and an engaged local community.
Sioux County residents are invited to join (registration link) PathOne Data Centers for a virtual community information meeting on Monday, August 17 at 5:30 p.m. Central.
