Supervisors Invite MiEnergy VP to Discussion on Impacts of Potential Data Center Development

Without your donation, some stories vanish. Support Decorah News. DECORAH — The Winneshiek County Supervisors took an initial step into a complex and rapidly evolving issue Monday, hearing from MiEnergy representatives about potential opportunities and challenges tied to data center development, even though no formal project has been proposed locally. The discussion, led by MiEnergy Cooperative Vice President Kent Whitcomb, was framed as an early-stage educational effort, with supervisors emphasizing they are gathering information before considering any policy or zoning changes. "We are at the very, very beginning of this conversation," Supervisor Shirley Vermace said, adding the goal is to build a knowledge base before taking any position on whether such facilities should be allowed. Whitcomb described data centers as "digital libraries" that underpin modern life, storing and processing data used in cloud computing, financial systems, government operations and social media. He outlined several categories of facilities, including artificial intelligence processing centers, traditional server hosting operations and cryptocurrency mining sites, each with different infrastructure demands. To illustrate scale, Whitcomb pointed to a 10-megawatt cryptocurrency mining facility that recently became operational in nearby Chickasaw County. The site runs continuously, drawing power around the clock except during limited shutdowns tied to high energy demand. "That's a constant draw," Whitcomb said, noting the facility can operate 24 hours a day, seven days a week. Supervisors pressed for comparisons to contextualize that scale. Whitcomb said a facility of that size could approach the energy usage of a town like Decorah, depending on residential and industrial demand. The conversation repeatedly returned to a central concern: balancing potential economic development with impacts on infrastructure, energy systems and surrounding communities. Whitcomb said MiEnergy's approach is to ensure large-scale energy users bear the full cost of connecting to the grid, including any necessary transmission upgrades, so existing customers are not subsidizing new development. "We don't want that passed on to other members," he said. "They're going to pay for that upgrade on their own." He added that data centers may also be required to curtail operations during peak demand periods. At the Chickasaw County facility, operators shut down several times per month for a few hours to avoid contributing to system strain and higher wholesale energy costs. That ability to reduce load, Whitcomb said, can benefit utilities in the short term by helping stabilize rates when excess capacity exists. But he cautioned the long-term picture is less certain. "In five or 10 years, what the capacity market is going to do is unknown," he said, noting broader regional demand could eventually drive costs upward. Supervisors also explored the physical and environmental footprint of such facilities. Whitcomb said cooling systems are a key differentiator. Fan-cooled sites can generate noise levels comparable to industrial equipment, while closed-loop liquid-cooled systems are quieter but may involve more complex infrastructure, including water use depending on design. "Each type has its own set of considerations," he said, pointing to noise, setbacks and water sourcing as issues local governments may need to regulate. Board members indicated those factors could become central to any future zoning ordinances should a proposal emerge. Transparency and public oversight also surfaced as concerns. Supervisors asked whether non-disclosure agreements (NDAs), sometimes used in large-scale data center negotiations, could limit information shared with the public. County Attorney Andy Van Der Maaten said public entities must be cautious, noting agreements restricting access to information could conflict with open records requirements, though he said additional legal research would be needed. "My default answer is that a public body shouldn't be signing an NDA," he said. Whitcomb said MiEnergy had not signed any NDAs while working on data centers and remained committed to transparency. Economic impact was another point of uncertainty. Whitcomb said tax revenue from data centers varies widely depending on how facilities are structured. Modular, container-based sites like the Chickasaw County example may generate relatively modest property tax revenue compared with larger, permanent industrial buildings. Supervisors also raised questions about state tax incentives and whether such policies could limit local benefits, though Whitcomb said those matters are typically handled at the state and municipal levels rather than by utilities. Throughout the discussion, board members stressed the importance of public involvement as the issue develops. "This needs to be a community decision," Vermace said, encouraging residents to share input as the county continues its research. Whitcomb echoed that sentiment and offered to arrange site visits to existing facilities so officials and residents can better understand how they operate. For now, Winneshiek County officials signaled they are focused on learning, not deciding, as they consider what role, if any, data centers could play locally. Get the inside scoop! Subscribe to the free DecorahNews.com newsletter and receive local news, expert analysis, and stories that matter most—straight to your inbox.