Supervisors Adopt Amendment Restricting Data Centers to M-2 Zoning

Without local news, all we have are rumors. Keep facts alive — give now. DECORAH — Winneshiek County officials took another step toward regulating future data center development, approving a zoning ordinance amendment that limits such facilities to land zoned for general industrial use and directing planners to develop additional standards and restrictions. The Winneshiek County Board of Supervisors held a public hearing June 1 on a proposed amendment to the county zoning ordinance that adds data centers as a permitted principal use in the M-2 General Industrial District. Following the hearing, supervisors approved the first reading of the ordinance, waived the second and third readings, and adopted the amendment. The board also directed the county Planning and Zoning Commission to continue researching data centers and develop additional regulations governing their construction and operation. Planning and Zoning Commission member Wendy Stevens said the amendment serves two purposes: identifying where data centers may be located and creating a framework for future operational standards. "The ordinance does two things," Stevens said. "It tells where things should be in the county, so it gives a place for things to be. And then, number two, it gives conditions for various things that are coming that they need to follow in order to exist in our county." Stevens said the commission determined the M-2 district was the most appropriate zoning classification because it already includes industrial warehousing and storage uses. She contrasted it with the county's M-1 district, which includes language prohibiting adverse effects on surrounding properties. Data centers are a relatively new land-use issue for many rural counties, she said, and placing them in the M-2 district ensures they do not "appear magically" elsewhere in the county without a designated location in the zoning code. Under the amendment, existing M-2-zoned properties could potentially host a data center, subject to current zoning requirements. If a developer sought to build on property not already zoned M-2, the proposal would require rezoning approval through the county's standard Planning and Zoning Commission and Board of Supervisors review process. The hearing also included discussion of whether the county should consider a moratorium on data center development while regulations are studied. Supervisors referenced other Iowa counties that have adopted moratoriums and discussed legal guidance from County Attorney Andy Van Der Maaten that additional information would be needed to justify such action. Stevens said the commission is prepared to begin researching ordinance language and reviewing regulations adopted elsewhere. The commission has already collected ordinances from several jurisdictions, including Allamakee and Linn counties, she said, but does not intend to simply copy another county's rules. "There are a lot of things that we like," Stevens said. "There are a lot of other things that we, I think, need to modify for our county." Supervisors raised concerns about the period between allowing data centers as a permitted M-2 use and completing a more comprehensive regulatory framework. Board members noted a developer could potentially pursue a project under existing industrial zoning standards before new restrictions are adopted. Stevens acknowledged that possibility but said future regulations could address issues such as setbacks, site restoration requirements and other operational standards designed to make data center operators "good neighbors." Board members also discussed the wide range of data center sizes being proposed nationally and regionally. Stevens noted that recent proposals range from small facilities occupying only a few acres to developments covering hundreds of acres. Board members referenced reports of large projects elsewhere in the Midwest, including a proposal near Pine Island, Minnesota. Supervisors said electrical infrastructure and available power supply may ultimately be one of the largest limiting factors for potential projects in Winneshiek County. The hearing drew questions from attendees about how much land is currently zoned M-2 and where those properties are located. Stevens said she did not have exact acreage figures available but identified industrially zoned properties along Highway 9 and Highway 52 as examples. After closing the public hearing, supervisors unanimously approved the first reading of the ordinance amendment. They later unanimously adopted the amendment and directed the Planning and Zoning Commission to continue researching data centers and draft potential guidelines, restrictions and ordinance language for future consideration. Be in the know, always! The free newsletter delivers local news, features, and tips directly to you—perfect for busy readers.