Residents question Bitcoin mine near ethanol plant; supervisors discuss zoning, permits and next steps

During the public-input portion of the Des Moines County Board of Supervisors meeting, a resident raised alarm about a Bitcoin-mining operation reportedly under construction near the county's ethanol plant and asked what, if any, county oversight existed.

"How did Des Moines County get involved with the Bitcoin business? I believe a Bitcoin mine is going in out by the ethanol plant," the resident said, adding concerns that a similar company's facility in Grundy Center had burned and noting the new operation reportedly will buy about $5,000 of electrical energy monthly and employ only a handful of people.

Land-use staff and county officials responded that Des Moines County has no countywide zoning outside a two-mile area around Burlington and that certain facilities had been regulated previously through a tailored ordinance for wind and solar that included battery storage. Jared Lassiter, the county's land-use official, said battery systems were included because they can be developed either as part of or separate from renewable projects and that the county based its ordinance on precedents in other jurisdictions.

County staff and legal counsel said options exist to address emerging industrial uses even without full countywide zoning. Officials described potential routes including drafting a standalone ordinance for data centers or industrial development standards under home-rule authority, adopting a moratorium while staff researches other counties' approaches, or requiring notice and board approval for large industrial leasehold permits. Staff cautioned, however, that buildings already under construction could argue they are grandfathered and that any ordinance would need to be carefully drafted to withstand legal challenge.

The board asked staff to research what other unzoned counties have done, to verify whether required permits (for example, wells or certain leasehold permits) have been obtained, and to return with options. Officials also noted that some aspects of new facilities (wells, environmental impacts) may be under State DNR or county health department jurisdiction and that those agencies could already be reviewing permits.

Why it matters: The arrival of new energy-intensive facilities such as mining operations or data centers raises issues for county planning, public safety (fire risk near combustible facilities and near an ethanol plant), infrastructure (electric supply), and long-term economic development. In an unzoned county, elected officials must weigh legal constraints, community preferences, and public-safety needs when considering regulations.

What the board may do next: Staff will look for precedent in other Iowa counties, assess permit records (wells, DNR/health approvals), and draft options — including the possibility of a standalone ordinance or an industrial-development ordinance — for board consideration.