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DATA CENTER REGULATION

City Council Briefing — Options, Research, and Community Input

Prepared for Council discussion • August 2026

Litigation precedent: Communities that have pursued outright prohibition (e.g., voter-enacted bans) have faced sustained legal challenge and years of contested proceedings. Takings & due process exposure: A total, permanent prohibition on a lawful use is far more vulnerable to a regulatory-taking or substantive due process claim than a use-specific, standards-based ordinance. Loss of negotiating leverage: A ban forecloses the City's ability to negotiate siting, size limits, buffers, and community benefits — tools a standards-based ordinance preserves.

Takings & due process exposure: A total, permanent prohibition on a lawful use is far more vulnerable to a regulatory-taking or substantive due process claim than a use-specific, standards-based ordinance.

Loss of negotiating leverage: A ban forecloses the City's ability to negotiate siting, size limits, buffers, and community benefits — tools a standards-based ordinance preserves.

State preemption trend: Several states have moved to limit local authority over data center siting; an aggressive ban invites the kind of conflict that accelerates preemption efforts. Iowa has not preempted local action to date but HAS adopted specific incentives for data centers based on sizing. See Iowa Code and Iowa Dept of Revenue info in supplemental research info.

Recommendation: Rather than an outright ban, staff recommends a thoughtful, standards-based ordinance that gives the City real control over siting, size, utilities, and community impact among other items.

Communities generally choose one of two structures, or blend both

Types of Data Centers: https://heli.law.uiowa.edu/projects/datacentersiniowa/iowa-data-center-decision-tool-resources-and-tools

Edge Data Centers Small facilities close to end users (Telecommunications infrastructure, smart cities)

Enterprise Data Centers Built and used by a single organization (University systems, hospitals, banks, manufacturers)

Colocation Data Centers Built to house equipment for multiple customers (City of Dubuque Data Center has capacity to lease space to others)

Hyperscale Data Centers Very large, supporting massive computing needs (Major tech firms – Amazon, Google, Meta, Microsoft)

Sizing as a trigger: Several peer ordinances scale requirements to facility size — e.g., a square-footage or power-draw threshold that separates routine server rooms (no extra review) from large or hyperscale facilities (special exception, conditional use permit, or full standards-based review).

• National League of Cities – Fact Sheets. Understanding Data Centers, Data Centers & Environmental Considerations, and Community Strategies to Address Data Center Development & Operation• Urban Land Institute – Local Guidelines for Data Center Development• Iowa College of Law, Hubbell Environmental Law Initiative: Iowa Data Center Decision Tool – Helping communities prepare for data center discussions• Georgia Tech EPI Center — Data Center Ordinance Hub (comparative review of 180+ Georgia jurisdictions' land-use standards & materials from across the country)• Additional materials provided (Ordinances, Articles, Studies) • Setback / buffer distances from residential uses and sensitive sites• Water and energy consumption studies, disclosures, limits• Noise standards tied to nearby zoning districts• Façade, screening, and aesthetic requirements• Decommissioning and site restoration obligations• Size threshold that seals the level of review

Mailed & Online Resident Survey

Questions addressed:

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Would Not Support 🔥 Support W/ Certain Requirements 🔥 Unsure/Needs More Information 🔥 Would Support ☐ (Blank)

Approximately 400 people attended. Of those who provided personal information:

If yes, then Structure:

Scope: If moratorium, for how long? If standalone, zoning, or combined approach, should regulation apply city-wide, or only to specific zoning districts?

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For Example:

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