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DATA CENTER REGULATION

# Considerations for the City of Dubuque

City Council Briefing — Options, Research, and Community Input

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## Can We Ban Data Centers — Completely and Forever?

## LEGALLY POSSIBLE

— but it is the riskiest legal path available to Council

## Why an Outright, Permanent Ban Carries Real Legal Exposure

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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.





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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.

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## Two Regulatory Approaches or a Blend

Communities generally choose one of two structures, or blend both

## Zoning Ordinance Amendment Regulate through existing zoning code

• Adds a “data center” definition and permitted-use table entries

• Applies existing district standards: setbacks, height, lot coverage

• Fastest to adopt — builds on a code Council already administers

• Best fit when impacts resemble other industrial/commercial uses

## Standalone Data Center Ordinance A dedicated chapter outside zoning

- Purpose-built standards: noise, water use, energy, decommissioning

- Can apply City-wide regardless of underlying zoning district

• Easier to update as technology and impacts evolve

• Best fit when data centers pose issues zoning code doesn't address

## Combined Approach (Hybrid) Zoning trigger + standalone standards

- Zoning code flags the use and sets a size threshold that triggers review

- Standalone chapter supplies the detailed operational conditions

- Lets Council calibrate scrutiny to project size (e.g., small vs. hyperscale)

• Most common approach among peer communities reviewed

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## Types of Data Centers & Size as a Trigger

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).

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## How Other Communities  Across the Country Have Approached This


<table border=1 style='margin: auto; word-wrap: break-word;'><tr><td style='text-align: center; word-wrap: break-word;'>Community</td><td style='text-align: center; word-wrap: break-word;'>Approach</td><td style='text-align: center; word-wrap: break-word;'>Key Mechanism</td></tr><tr><td style='text-align: center; word-wrap: break-word;'>Tippecanoe County, IN</td><td style='text-align: center; word-wrap: break-word;'>Zoning amendment</td><td style='text-align: center; word-wrap: break-word;'>2025 passage.\nSize threshold (10,000 sq ft) separates “data center” from “large data center”; smaller operations permitted to continue in certain zoning areas, larger facilities need special exception and have limited zoning areas in which to locate</td></tr><tr><td style='text-align: center; word-wrap: break-word;'>Valparaiso, IN</td><td style='text-align: center; word-wrap: break-word;'>Moratorium</td><td style='text-align: center; word-wrap: break-word;'>Moratorium passed August 10, 2026\nOriginally proposed ordinance to allow upon issuance of a special use permit required for any data center in a heavy industrial area.</td></tr><tr><td style='text-align: center; word-wrap: break-word;'>Franklin County, PA</td><td style='text-align: center; word-wrap: break-word;'>Standalone chapter</td><td style='text-align: center; word-wrap: break-word;'>May 20, 2026 passage.\nAdded to the Subdivision &amp; Land Development Ordinance ahead of any pending project, following two public hearings</td></tr><tr><td style='text-align: center; word-wrap: break-word;'>St. Louis, MO</td><td style='text-align: center; word-wrap: break-word;'>Hybrid</td><td style='text-align: center; word-wrap: break-word;'>Public Comment through August 31, 2026\nZoning text amendment built from a review of multiple peer ordinances, tailored to local siting and community concerns</td></tr><tr><td style='text-align: center; word-wrap: break-word;'>Monterey Park, CA</td><td style='text-align: center; word-wrap: break-word;'>Ballot Issue</td><td style='text-align: center; word-wrap: break-word;'>June 2, 2026\nBan on data centers</td></tr><tr><td style='text-align: center; word-wrap: break-word;'>Eagan, MN</td><td style='text-align: center; word-wrap: break-word;'>Temporary moratorium</td><td style='text-align: center; word-wrap: break-word;'>February 2026 passage.\nOne-year pause adopted to allow time to study and adopt permanent standards before new applications proceed.\nCity sued by data center owner, lawsuit pending.</td></tr></table>

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## How Other Communities Across Iowa Have Approached This


<table border=1 style='margin: auto; word-wrap: break-word;'><tr><td style='text-align: center; word-wrap: break-word;'>Community</td><td style='text-align: center; word-wrap: break-word;'>Approach</td><td style='text-align: center; word-wrap: break-word;'>Key Mechanism</td></tr><tr><td style='text-align: center; word-wrap: break-word;'>Linn County</td><td style='text-align: center; word-wrap: break-word;'>Hybrid</td><td style='text-align: center; word-wrap: break-word;'>18-month moratorium on Large Scale Data Centers through January 1, 2028
Ordinance adopted February 18, 2026. New zoning district (EU-3), water study required, water use agreement, economic development agreement required, noise limits, setbacks, light pollution limits, waste management plans, mitigation of infrastructure impacts (roads, emergency response)</td></tr><tr><td style='text-align: center; word-wrap: break-word;'>Des Moines</td><td style='text-align: center; word-wrap: break-word;'>Zoning Amendment</td><td style='text-align: center; word-wrap: break-word;'>New use definition/size threshold within existing commercial use category</td></tr><tr><td style='text-align: center; word-wrap: break-word;'>Johnson County</td><td style='text-align: center; word-wrap: break-word;'>Moratorium</td><td style='text-align: center; word-wrap: break-word;'>1-year moratorium in November 2025, new zoning ordinance to be drafted during moratorium</td></tr><tr><td style='text-align: center; word-wrap: break-word;'>Allamakee County</td><td style='text-align: center; word-wrap: break-word;'>Zoning</td><td style='text-align: center; word-wrap: break-word;'>• Micro Data Centers limited to A-1, C-1, I-1, I-2 zoned areas
• Large Data Centers prohibited except as permitted by Conditional Use in I-2 districts
• 5-mile distance between micro data centers, 20-mile distance required between large data centers
• Regulation on cooling methods, height, setbacks, fencing, landscaping, signage, noise, back-up power.
• Additional requirements for large data centers: lighting, water quality protections, viewshed limitations, economic development agreement required, fire safety plan, emergency operations plan, roads, decommissioning</td></tr><tr><td style='text-align: center; word-wrap: break-word;'>Palo</td><td style='text-align: center; word-wrap: break-word;'>Zoning</td><td style='text-align: center; word-wrap: break-word;'>Exclusive Data Center Use District
Regulation on lighting, noise, road use, emergency response plan, economic development agreement required, setbacks, street access, parking, off-street loading, buffers, sewer and water connections, avoidance/mitigation of damage to public infrastructure, studies required</td></tr></table>

City of Dubuque | Data Center Regulatory Framework

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## How Other  Communities Across Iowa Have Approached This, Continued


<table border=1 style='margin: auto; word-wrap: break-word;'><tr><td style='text-align: center; word-wrap: break-word;'>Community</td><td style='text-align: center; word-wrap: break-word;'>Approach</td><td style='text-align: center; word-wrap: break-word;'>Key Mechanism</td></tr><tr><td style='text-align: center; word-wrap: break-word;'></td><td style='text-align: center; word-wrap: break-word;'></td><td style='text-align: center; word-wrap: break-word;'></td></tr><tr><td style='text-align: center; word-wrap: break-word;'>Clinton</td><td style='text-align: center; word-wrap: break-word;'>Hybrid</td><td style='text-align: center; word-wrap: break-word;'>Adds definitions, creates new Data Center section, allows data centers in M-1, M-2, and M-3 Industrial Districts subject to standalone standards, plan submission required, setbacks, screening, orientation, development agreement may be required, water use, cooling, &amp; protection, lighting, noise/vibration, traffic, access, &amp; road use, emergency response, environmental, decommissioning, airport protection/FAA compliance</td></tr><tr><td style='text-align: center; word-wrap: break-word;'>Dubuque County</td><td style='text-align: center; word-wrap: break-word;'>Moratorium</td><td style='text-align: center; word-wrap: break-word;'>12-month moratorium</td></tr><tr><td style='text-align: center; word-wrap: break-word;'>Wapello County</td><td style='text-align: center; word-wrap: break-word;'>TBD</td><td style='text-align: center; word-wrap: break-word;'>August 11, 2026 -- work session</td></tr><tr><td style='text-align: center; word-wrap: break-word;'>Jefferson County</td><td style='text-align: center; word-wrap: break-word;'>Ordinance &amp; Moratorium</td><td style='text-align: center; word-wrap: break-word;'>August 11, 2026 -- adopted ordinance and 1-year moratorium</td></tr><tr><td style='text-align: center; word-wrap: break-word;'>Jackson County</td><td style='text-align: center; word-wrap: break-word;'>Moratorium</td><td style='text-align: center; word-wrap: break-word;'>Through August 4, 2027</td></tr><tr><td style='text-align: center; word-wrap: break-word;'>Floyd County</td><td style='text-align: center; word-wrap: break-word;'>Moratorium</td><td style='text-align: center; word-wrap: break-word;'>Through March 2, 2027</td></tr></table>

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## Research Base & Common Themes Across Ordinances

## Research Materials Consulted


<table border=1 style='margin: auto; word-wrap: break-word;'><tr><td style='text-align: center; word-wrap: break-word;'>• National League of Cities – Fact Sheets. Understanding Data Centers, Data Centers &amp; Environmental Considerations, and Community Strategies to Address Data Center Development &amp; 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&#x27; land-use standards &amp; materials from across the country)• Additional materials provided (Ordinances, Articles, Studies)</td><td style='text-align: center; word-wrap: break-word;'>• 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</td></tr></table>

## Themes Common to Most Ordinances

• Size threshold that scales the level of review

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## Community Input Survey & Engagement Sessions

Mailed & Online Resident Survey

• Mailed to every residence in Dubuque. (31,000)

• Available online for anyone to complete.

• 3,777 total responses received (2,577 online, 1,200 paper)

Questions addressed:

1. What are the most important topics a data center ordinance should address? (From 1 = very important to 3 = not important)

2. As the City considers rules for future data centers, which potential benefits are most important to you? (From 1 = most important to 7 = least important)

3. Which statement best matches your current opinion?

I would support a data center in Dubuque.

I would support a data center if certain requirements are met.

I would not support a data center in Dubuque.

I am not sure and need more information.

In-Person Roundtable Discussions



4. Is there any other feedback you'd like to share? (open text box)

• July 21 and 27



Approximately 400 attendees

Questions addressed:

1. What are the most important topics a data center ordinance should address? (14 table discussion categories)

2. Deep dive into topic of most interest to residents to explore specific concerns and potential ordinance language.

3. What community benefits should the City consider or prioritize?

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## Survey Results

<div style="text-align: center;">Where Do You Live?</div>


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## Survey Results

## Which statement best matches your current opinion?

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

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## Survey Results

<div style="text-align: center;">...Most Important Topics, "Very Important" Total</div>


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## Survey Results

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<div style="text-align: center;">...Potential Benefits, #1 Most Important Total</div>


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Response Option

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## Survey Results

<div style="text-align: center;">Is there any other feedback you'd like to share? (Open-Ended)</div>


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Percent of All Comments

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## Roundtable Results

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

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■ Residents ■ Non-Residents ■ Unknown

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## Which Issues Are Most Important To You?

1. Environmental Impact: Pollution, wildlife disruption, harm to farmland, water, human health

6. Jobs & Economic Benefits: permanent jobs created for local residents, short-lived economic benefits



2. Location & Land Use: Distance from residential areas, farmland, environmentally sensitive zones, airport, schools, low-income neighborhoods

3. Noise & Light Pollution: impact on birds, sleep patterns, health, property values

7. Ongoing Monitoring & Accountability: Distrust in self-reporting, concerns that enforcement must be robust and public



4. Water Use & Quality: Consumption, contamination, wastewater, stormwater runoff. Can City's infrastructure support?

5. Power & Energy: Increased rates, strain on the power grid, reliance on non-renewable energy sources

8. Community Process & Transparency: Transparency, Non-Disclosure Agreements, information accessible to the public



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## Recurring Solutions & Ordinance Rules Proposed

1. Strict Siting & Zoning Rules: Industrial zoning, buffer zones, no annexation/rezoning of farmland

6. Enforcement & Accountability: Forced shutdowns for non-compliance, not fines. Upfront bonds to cover future costs.



2. Environmental Protections: Baseline assessments before construction, 3rd party monitoring, water protections

3. Noise & Light Regulation: Use World Health Organization and Dark Sky guidelines, public reporting

7. Community Benefits: Should be shared equitably with priority for those most affected.



4. Power & Utility Rules: Self-generation, renewable energy, rate freezes for residents, no reduced rates or incentives for data centers

5. Job & Economic Requirements: mandates for local workers, permanent jobs with livable wages, local unions. No incentives or subsidies.

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## Direction Needed from Council

## 1 Ordinance: Yes or No

If yes, then Structure:

Moratorium

Ban

• Standalone Ordinance

• Zoning Ordinance Amendment

• Combined Approach

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

## 3 Sizing (if applicable): Should there be a size threshold that triggers heightened review? If yes, what size?

### 4 Timeline: Target schedule, depends on City Council Direction. See Next Slide

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## Direction Needed from Council

## 4 Timeline: Target schedule, depends on City Council Direction

For Example:

• Standalone, Zoning, or Hybrid Ordinance:

• November 2, 2026, Draft presented for Council discussion & feedback

• November 4, 2026, Zoning Commission Review & Consideration (IF APPLICABLE)

November 16, 2026, First Reading

• December 7, 2026, Second Reading

• December 21, 2026, Final Reading

Moratorium: September 8, 2026

Ban: September 8, 2026