The Sioux County Board of Supervisors advanced proposed data center regulations on another 4–1 vote Tuesday, October 13, following public questions about enforcement, electricity costs, agricultural impacts, and protections for neighboring properties.
Supervisor Dan Altena again cast the lone opposing vote, matching the board’s September 29 decision. The amendment to County Ordinance No. 1, the county’s zoning ordinance, now moves to a third and final reading October 27 at 9 a.m.
County Zoning Director Shane Walter said the proposed language had not changed between the first and second readings. He explained that the county already has a conditional-use process for industrial projects but developed additional requirements to address the particular demands of data centers.
Oversight, Utilities, and Neighbor Protections
Questions during Tuesday’s hearing included who would verify compliance and whether penalties would be substantial enough to discourage violations.
Walter said independent studies would be required before a facility could open, with periodic reviews afterward. The county zoning director would ultimately be responsible for ensuring that oversight occurs. He said a separate fine schedule would be established, although the amounts had not yet been determined.
The discussion also addressed the potential to shut down an operation that failed to comply with required agreements.
On electricity, Walter pointed to the proposed 25-megawatt limit and argued that using existing, underutilized infrastructure at the former Bison project site near Hull could help spread costs among more users. He also said applicants would be responsible for necessary infrastructure improvements.
“So they have to enter an agreement with the provider to do that, so that that cost is borne entirely by the applicant and not consumers,” Walter said.
Other protections discussed included closed-loop cooling, setbacks, and noise limits measured at neighboring homes rather than at the data center itself. Walter said technology improvements could reduce resource demands over time.
The proposal also includes a community betterment fund. Walter said the initial contribution amount and the structure of subsequent payments would be determined later.
Altena Cites Residents’ Reservations
Altena acknowledged the work that had gone into the proposed rules and Path One’s efforts to explain its plans through public meetings. However, he said residents who had contacted him remained uneasy about bringing a data center to the county.
“I think people are still scared and worried and would like to take some time and let somebody else try it first before we do is what I’m hearing,” Altena said.
He later emphasized that he recognizes the value of technology in agriculture and law enforcement. His concern, he said, was residents’ reluctance to be among the first nearby communities to host such a facility—not opposition to using data.
Altena also pushed back on any suggestion that Sioux County would lose access to data services without a local center.
Agriculture and the Facility’s Lifespan
Students from MOC-Floyd Valley’s FFA attended as part of their preparation for an agricultural issues contest. Their questions prompted discussion about how data processing relates to farming and how the proposed rules would protect agricultural resources.
Supervisor Craig Hoftyzer said he was speaking about data centers generally, rather than the specific local proposal. He pointed to precision spraying technology that identifies individual weeds instead of treating an entire field.
“So instead of broadcasting chemicals over an entire field, you’re using probably seventy to eighty percent less chemicals,” Hoftyzer said.
He also described combine technology that uses cameras and satellite imagery to anticipate changing crop conditions.
“And the combine is automatically adjusting settings, RPMs, and ground speed to be most efficient. And the operator is not even doing that,” Hoftyzer said.
Walter said the county’s approach seeks to balance agricultural preservation with industries that support the local economy.
Questions about decommissioning also led to a discussion of how long a data center could operate. After Walter offered a tentative estimate of 10 to 20 years, Path One representative Gyles Uhlenhopp said the building itself could have a significantly longer life than the equipment inside it.
“There’ll be a process where we have to upgrade on the inside for a variety of reasons, but that doesn’t mean that we’ll tear down the facility. That means you make an upgrade and you move from there,” Uhlenhopp said.
Uhlenhopp also said smaller data centers have existed throughout the internet’s history, distinguishing them from the much larger facilities receiving national attention.
Final Reading Scheduled October 27
Walter said changes could still be made before final approval, but revised language would need to return to the Planning and Zoning Commission for review and a recommendation to supervisors.
Tuesday’s vote advanced the zoning amendment; it did not approve a specific data center application. Walter said Path One is interested in submitting an application if the ordinance is approved.
The third and final reading is scheduled for October 27 at 9 a.m. If approved at that reading, the amendment would take effect upon publication.
The proposed ordinance is available for the public to review at siouxcounty.org.
Sioux County’s data center moratorium for its unincorporated parts remains in effect.
