Sioux County supervisors have approved a one-year moratorium on new data centers and battery energy storage systems in the county’s unincorporated areas as officials work to better understand the potential impacts of the rapidly growing industry.
The moratorium applies only to unincorporated areas of Sioux County. Incorporated communities would continue to have authority over zoning and land-use decisions within their own city limits.
The decision comes as communities across Iowa grapple with questions surrounding large-scale data center projects, including concerns over land use, water consumption, electrical demand, and economic benefits.
Sioux County Supervisor Craig Hoftyzer says the moratorium is intended to give county leaders time to put regulations in place before any proposals move forward. He says that there are a lot of unknowns with data centers.
“So now, there’s a whole lot of people asking questions, saying, ‘What kind of effects is this going to have on our property values or the environment, whether it’s water usage or electrical usage?’ There’s just a whole lot of unknowns and a lot of questions.”
Taking a Cautious Approach
According to Hoftyzer, who represents District 5 in Sioux County, the moratorium does not mean that the county is opposed to data centers or battery storage facilities altogether.
Instead, supervisors want time to study the issue and potentially develop ordinances similar to those already in place for wind energy and solar developments.
“Not to necessarily say that we absolutely will not let data centers into Sioux County, but more to give us time to put some possible ordinances in place, similar to what we did with windmills and solar farms and some of those kinds of things.”
Questions About Long-Term Benefits
Hoftyzer says supervisors are also taking a closer look at claims surrounding economic development and job creation associated with data centers.
“I don’t know that they actually create that many jobs. And again, the resources that they use may or may not be worth the taxes that they would generate on a property tax basis.”
County officials say they want to avoid making long-term decisions without fully understanding the potential impacts and opportunities associated with the projects.
