Councilman Shoemaker raised potential long-term implications if data centers or cryptocurrency mining operations were proposed near Lincoln, asking the council to consider preparatory steps despite no current proposals targeting the city.

Shoemaker and other council members noted two primary concerns: increased electrical and water demand from large computing facilities and the difficulty of decommissioning sites if a company leaves. Shoemaker referenced materials in the council packet, including examples of other cities' responses, letters from Capital Electric showing recent rate increases and model approaches used elsewhere (for example, moratoria to buy time to draft zoning or decommissioning requirements).

Staff said draft materials in the packet included three approaches: (1) a temporary moratorium (a two-year moratorium was cited as an example used in another jurisdiction) to allow the city to draft regulations, (2) a draft ordinance creating a new zoning district specific to data centers and cryptocurrency-mining facilities, and (3) proposed updates to zoning definitions to add terms specific to these uses.

Council members asked about state-level preemption concerns. Shoemaker noted a referenced Senate Bill (recorded as Senate Bill 2208 in the packet discussion) that had been proposed and was described as potentially affecting municipal authority; the transcript records the bill was not enacted. Staff and council agreed that no local applications were pending but that preparing language and considering a moratorium were prudent next steps.

No ordinance was adopted at the June 5 meeting. The matter was discussed for direction; staff were asked to coordinate further draft language and legal analysis for future council consideration.