A company interested in redeveloping the former Bison Renewable Energy site in Sioux County says it wants to build a smaller-scale data center that would make use of existing infrastructure, but county officials and residents say they still need more answers before any project can move forward.
Representatives from PathOne Data Centers met with the Sioux County Board of Supervisors this week to discuss a potential project at the former Bison site, describing what they called an “edge” data center that would be significantly smaller than the large-scale projects that have sparked debate elsewhere in Iowa.
The developers said the proposed facility would make use of existing electrical capacity already available at the site and would have a relatively small footprint, limited traffic, and modern cooling technology designed to minimize water consumption and noise. They also revealed they had an end user in place and were preparing to begin the permitting process before the county approved a one-year moratorium on new data centers earlier this month.
Officials Seek More Specifics
Several supervisors and attendees questioned the developers about water usage, tax benefits, electrical demand, and potential impacts on neighboring property owners.
One attendee summed up the skepticism shared by other people in the room, telling developers:
“You make a lot of promises, but you don’t give any specifics (on) how this is going to generate revenue.”
Supervisor Craig Hoftyzer later said he was surprised to learn how far discussions surrounding the project had already progressed.
“I was just surprised that they were already in the process of starting or talking about this project.”
Hoftyzer said the lack of information surrounding many data center proposals often fuels public concern.
“Anytime there’s a lack of knowledge or not full disclosure, that is enough to make people pause and hesitate and have some concerns.”
Questions about water consumption drew particular attention during the meeting, with attendees and supervisors repeatedly pressing developers for estimates on how much water the facility could use and how often cooling systems would need to be replenished. Developers acknowledged that many of those details remain dependent on the eventual end user and final design of the facility.
Moratorium Working as Intended
Earlier this month, supervisors approved a one-year moratorium on new data centers and battery energy storage systems in unincorporated areas of Sioux County, saying they needed time to better understand the potential impacts of the rapidly growing industry and develop regulations before any projects move forward.
Monday’s discussion illustrated many of the same concerns that led to the moratorium, including questions surrounding water use, electrical demand, environmental impacts, and economic benefits.
Hoftyzer emphasized that the meeting was informational only and should not be viewed as an effort to move the project forward.
“We have no agenda. We are not looking to push anything. We really don’t have an opinion on it. We’re just — they asked for the opportunity to come and talk to us, and we felt like we would give that to them.”
While the moratorium could technically be lifted before the year is up, Hoftyzer said he has no plans to rush the process.
“As we sit here today, I really don’t have any intention of lifting it early.”
He said planning and zoning officials still need time to draft potential regulations governing issues such as setbacks, water use, noise, and power consumption before supervisors would consider any future applications.
Local Manufacturer Voices Support
Not everyone in attendance expressed concerns about the idea.
Phil Kooima, owner of Kooima Ag and a co-owner of Kooima Company in Rock Valley, said he believes data centers would be “a good thing for the county,” arguing they are becoming essential infrastructure for modern manufacturing.
“This is the next level when we talk about the Internet of Things, and we talked about intellectual manufacturing. This is where we need to go as a manufacturing community.”
Kooima said manufacturers increasingly rely on cloud computing and artificial intelligence and argued northwest Iowa should benefit from the technology rather than sending that business and investment elsewhere. He also pointed to his own company’s use of closed-loop water systems as an example of how technology can significantly reduce water demands.
What Happens Next
The former Bison Renewable Energy site has seen several redevelopment proposals over the years, including projects involving renewable fuels and aviation fuel production, but none have ultimately moved forward.
For now, supervisors say the county remains in information-gathering mode as planning and zoning officials begin crafting potential regulations for future data center proposals.
