The Sioux County Board of Supervisors approved new data center regulations and voted to lift the county’s moratorium Tuesday, allowing developers to seek approval once the changes take effect.
Both resolutions passed on 4–1 votes following the third and final public hearing on October 27th in Orange City. Supervisor Dan Altena opposed both measures, saying he wanted more time for discussion and study.
The regulations and the resolution rescinding the moratorium take effect upon publication. Sioux County Zoning Director Shane Walter said the county can then begin accepting applications.
The action follows months of discussion as PathOne Data Centers pursues a project in Sioux County. Tuesday’s votes did not approve a specific facility.
The moratorium was put in place back in June to give the county time to put a new set of rules in place targeted specifically toward data centers.
Studies and Operating Requirements
Walter said applicants must provide independent studies addressing issues including water availability, electricity use, and noise. The county would determine which qualified professionals conduct those reviews.
He said the requirements would give the county a way to ensure developers meet its standards before opening.
“Essentially, the county would hold the certificate of occupancy until all of those thresholds are met and those studies are conducted.”
Walter said studies would continue after a facility begins operating. The ordinance also includes thresholds for cumulative resource use that would trigger additional reviews.
Supervisor Carl Vande Weerd said the rules include a 25-megawatt limit per site and require developers to pay for needed utility infrastructure improvements. He emphasized that adopting the ordinance establishes standards for reviewing proposals.
“Once these rules are put in place, then the data companies can apply and comply with our rules.”
Public Questions and Calls for More Time
Public comments raised concerns about water availability, the pace of the process, and coordination with neighboring counties and regional water providers. One attendee questioned whether the water-use estimates adequately reflected the demands of data centers.
Other questions focused on transparency, potential privacy and surveillance issues, and whether adding a data center would actually lower electricity rates.
County officials pointed to the informational meetings already held and said they had shared the proposed regulations with neighboring counties. Walter said the required independent water study must demonstrate that sufficient water is available without undue adverse effects on existing users.
During the discussion of electricity rates, a utility representative explained that additional electricity sales could spread fixed costs across more usage. He said that could keep future rates below where they would otherwise be, even if rates still increase.
Altena praised the work on the regulations and the informational meetings. However, he said residents remain hesitant and that keeping the yearlong moratorium would give the county more opportunity to learn from other counties and refine its rules.
“And I personally would have liked to wait longer,” Altena continued. “Keep working on the rules. Keep having discussions like this. Informational meetings. More of them. Keep the moratorium in place. Go a little longer. That’s where I’m at.”
Altena also opposed the first two readings of the ordinance amendment, which passed on 4–1 votes September 29th and October 13th. The next step would be for interested parties, like PathOne Data Centers, to submit applications, which would then need to be approved.
