Council directs staff to write data-center rules and adopts four-month moratorium

The Marshalltown City Council on July 13 directed city staff to draft zoning amendments tailored to data-center development and adopted a four-month moratorium on data-center applications while the city writes those rules.

Council member (speaker 24) moved the directive, asking staff to work with the city attorney and the Marshalltown Area Chamber of Commerce economic development team to prepare a code amendment. “Prepare amendments to the Marshalltown zoning ordinance establishing regulation specific to data center development,” the motion said, listing topics the draft should cover including definition, permitted zones, infrastructure capacity and utility impact studies.

Staff told the council that data centers currently are treated as a "major utility" and are eligible through special-use permit procedures in the zoning code, which means many proposals could be reviewed without a city-council hearing unless incentives, annexation or rezoning were requested. Assistant Director Clayton Ender presented a fact sheet of best practices and noted that the city lacks specific thresholds for power or water use tied to land-use approval.

Planning and Zoning Commission chair John Boston told the council his commission can accelerate work and bring proposals to the council more quickly if asked. "We can put it right in the zoning ordinance," he said, and suggested options such as requiring closed-loop cooling systems and specifying setbacks and buffering.

Residents filled the public-comment period with concerns about water withdrawals, increased electric demand and possible health or environmental impacts, and urged the council to act before a major proposal arrives. One resident said Marshalltown currently "does not regulate water or energy use by land-use type," and urged the council to close that gap. Others urged a slower, public-informed process to set standards.

After discussion, councilors adopted the staff-directing motion as amended to include a four-month moratorium on processing data-center applications while staff drafts the proposed zoning text. The moratorium and drafting directive passed by roll call. Staff estimated a drafting timeline of roughly three to four months for an expedited effort with public engagement, though some council members said they would push for a faster timeline.

The next formal steps include staff drafting proposed ordinance language, Planning and Zoning Commission review and public hearings; the council will consider any ordinance changes on three readings as required by state law.