HomeMy WebLinkAboutA029 - Data CentersITEM #:28
DATE:07-28-26
DEPT:ADMIN
SUBJECT:TEMPORARY DELAY IN ALLOWING DATA CENTER DEVELOPMENTS
COUNCIL ACTION FORM
BACKGROUND:
At the City Council meeting on July 14, staff presented a memo outlining the legal means that
the City Council has available to limit the construction of data centers. The memo contained
options that relate to zoning, noise, and utility service.
The memo also offered the Council the option to impose a temporary delay on allowing data
center developments while the Council researched and adopted regulations, or an option to
impose a "permanent" ban on data center developments altogether.
The list of options presented on July 14 is provided below:
1. Distinguish data centers as a use in the current Zoning Ordinance separately from the
existing data processing use definition.
2. Restrict data centers based on building size, the use of on-site power generation, and
the type of cooling system used.
3. Restrict data centers to only certain zoning districts or implement separation distances
from certain uses.
4. Require more specific information to be provided in an Industrial Zoning Use Analysis
Report required for new industrial developments.
5. Strengthen Site Development Plan Requirements for Industrial projects in order to
provide a clearer basis to deny projects that are not able to mitigate their impacts.
6. Revise Site Development Plan Requirements to incorporate impacts to the utilities rather
than related only to the utility lines which is the current requirement.
7. Change the development approval process for data centers to one of several options
ranging from:
i) Staff approval for projects up to a certain size,
ii) City Council approval,
iii) Special Use Permit through the Zoning Board of Adjustment, or
iv) A Rezoning process with either a Master Plan or Overlay that allows for a contract
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rezoning with a high degree of City Council discretion.
8. Changing noise regulations to more adequately capture noise from low-frequency
sources.
9. Making penalties for noise regulation more effective to produce compliance.
10. Eliminating the discrepancies between the Electric tariff and the Utilities chapter. Data
centers could be considered only on a contract rate basis, which allows for a negotiation
of the upfront costs for infrastructure to be charged to the data centers.
11. Incorporating an excess facilities threshold and criteria into the Water Utility regulations
to obligate "large" water customers to pay upfront for the infrastructure to serve them.
12. An excess facilities threshold and criteria should be incorporated into the Wastewater
Utility regulations to obligate large sanitary sewer customers to pay upfront for the
infrastructure to serve them.
13. A moratorium on data center developments could be adopted for a fixed period of time
(subject to extension).
14. A "permanent" ban on data centers could be adopted through the Zoning Ordinance.
In response to the July 14 report, the City Council directed that staff prepare a
temporary delay for data center permits to be presented for consideration on July 28.
The City Council members were asked to bring to this meeting lists of the questions
and topics they would like to see addressed during a delay.
Staff also was tasked to prepare a plan that illustrates the anticipated timing for the
delay in the event that all the tasks identified in the memo (excluding the temporary
delay itself or a permanent ban on data centers) were assigned to be completed.
TASKS TO BE COMPLETED:
Staff has prepared the table below to illustrate the anticipated timing for the completion of the
12 previously identified tasks. Some of the tasks are dependent upon decisions made by the
City Council in earlier tasks. For example, the decision made about the type of approval
process that is used may make some of the site development plan requirement
modifications, (Items 5 and 6 above) moot. Therefore, the tasks have been arranged to
reflect the order in which staff believes they should be addressed.
There are generally two types of ordinance changes needed to address the tasks. The
majority of changes about the various design aspects of data centers are related to zoning
standards which have a different approval process under state law compared to regular
ordinances by requiring a Planning and Zoning Commission recommendation prior to a
hearing before the City Council.
Some of the tasks that related to defining the use and establishing the use and its standards
within industrial zones were already reviewed by the Commission on June 3 and do not need
an additional review. However, newer issues related to Site Plan Review criteria or noise
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have not been discussed in detail with the Commission.
The table below includes the required P&Z recommendation steps as applicable for new
issues that were not previously reviewed by the Commission.
The Council should note that the table does not include any specific pauses the
Council may desire to obtain additional information, make final decisions, or gather
pubic feedback (e.g., workshop or listening session) about certain topics prior to
making a decision:
August September October November December January
Zoning-Define
Data Center
use
1st
Reading of
Ordinance
Zoning-Identify
preferred
approval
process, i.e.
changes to site
plan criteria,
overlay district
Staff
Report P&Z
1st
Reading of
Ordinance
Zoning-
Restrictions on
use -building
size
1st
Reading of
Ordinance
Zoning-
Restriction on
use based upon
other attributes,
on-site power,
cooling
systems, etc.
Staff
Report P&Z
1st
Reading
of
Ordinance
Zoning-Allowed
zoning districts
and
siting/separation
1st
Reading of
Ordinance
Zoning-
Industrial Use
Report
Requirements
1st
Reading of
Ordinance
Water excess
facilities
language
Staff
Report
1st
Reading of
Ordinance
Sewer excess
facilities
language
Staff
Report
1st
Reading of
Ordinance
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Noise
Ordinance
changes Staff
Report
(Potential
P&Z)
1st
Reading of
Ordinance
Noise Penalties Staff
Report
1st
Reading of
1st
Reading of
Ordinance
Site Plan
Requirements Staff
Report
1st
Reading of
Ordinance
Site Plan -
Utility Lines Staff
Report
1st
Reading of
Ordinance
Electric
Tariff/Chap. 28 Staff
Report
1st
Reading of
Ordinance
TEMPORARY DELAY IN DATA CENTER PROJECTS:
Based on the list of tasks above, staff believes a six-month delay in approving new data
center projects could be sufficient time to complete the work. This would result in a
temporary pause in data center developments through January 2027. However, should
the proposed delay period prove to be inadequate to complete all of the assigned tasks
from the City Council, the delay would have to be extended.
For the purpose of the delay, staff is proposing to define "data center" using the language
being separately presented to City Council at this July 28 meeting for a data center text
amendment:
"Data center means a facility whose primary service is data processing or data storage, and is
used to house computer systems and associated components, such as central processing
units, graphical processing units, neural networks, quantum bits, quantum processors,
memory, data routing, data storage, server farm, crypto currency mining or processing, virtual
private networks, virtual servers, artificial intelligence (AI) training or processing, image
processing, cloud computing, email servicing, or any other term applicable to facilities which
are used for such purposes shall be deemed to be a data center. Data processing as an
accessory use to a principal use in the same building is limited to a maximum of 10,000
square feet in order to not be considered a primary use.”
The City Attorney has prepared a draft resolution for a temporary delay for six months
indicating that no new development or expansion of an existing development meeting
the above definition will be allowed during the term of the delay (see Attachment A).
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ALTERNATIVES:
1. Approve the list of topics to be further studied related to data centers as described in this
report, and adopt a six-month temporary delay on allowing any data center development
or expansion of any existing data center use.
2. Modify the list of topics and adopt a temporary delay on data center developme nts or
expansions in a time length commensurate with the topics to be further studied.
3. Do not adopt a temporary delay on data center development or redevelopment, and
allow data center developments to be regulated in accordance with existing adopted
development requirements.
CITY MANAGER'S RECOMMENDED ACTION:
The City requested that Staff estimate the time needed for a temporary delay in approving any
new data centers or expansion of any other data center. Therefore, a best effort has been
made to predict the amount of time needed to complete the necessary research for the list of
topics previously presented to the Council regarding data center developments. Based on this
information, Staff is optimistically estimating that the delay should be in place until, at least, the
end of January.
It should be emphasized, however, that this timeframe may have to be lengthened
depending on whether:
1) The Council members have additional requests for information not previously discussed,
2) The information provided to Council results in a request to study additional topics or
questions, or
3) The City Council wishes to adjust the delay to accommodate additional time for City Council
deliberation/decision making regarding proposed ordinance and regulation changes as well as
public input opportunities.
Assuming the City Council does not identify any additional topics to be evaluated
during the pause in data center development, it is the recommendation of the City
Manager that the City Council adopt Alternative No. 1, as described above.
However, if it becomes apparent that additional time is needed 1) for staff to complete
its research, 2) for the Council to make decisions regarding regulations for each
category selected for consideration, and/or 3) for the Council to decide if additional
time is needed to allow for public input into the various regulations that are being
proposed, then Alternative 2 should be pursued which could extend the delay by one to
two additional months.
ATTACHMENT(S):
Resolution Data Center Delay.docx
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RESOLUTION NO. 26-
RESOLUTION ESTABLISHING A SIX (6) MONTH DELAY ON THE ACCEPTANCE,
PROCESSING, AND APPROVAL OF APPLICATIONS OR PROPOSALS OF ALL
CLASSES OF DATA CENTERS FOR THE CITY OF AMES, IOWA
WHEREAS, a proposal to build a data center in Ames was recently presented to
the Ames City Council; and,
WHEREAS, there has been significant controversy about data centers nationally,
in Iowa, and in Ames, and there has been an unprecedented response and involvement
by the citizens of Ames to the current proposal; and,
WHEREAS, data centers have been emerging nationwide as large-scale industrial
facilities that vary significantly in size, operational intensity, environmental impact, water
and energy demand, noise generation, and compatibility with surrounding land uses; and,
WHEREAS, such facilities may involve substantial levels of water use, electrical
consumption, continuous mechanical noise generation, large -scale cooling infrastructure,
accessory substations, emergency backup power systems, and other related
components that may pose unique and significant land-use impacts on surrounding
properties, natural resources, public services, and quality of life of residents; and,
WHEREAS, after review by City staff, many issues concern ing data centers have
been identified that need further study or action before the City can proceed with
considering a data center proposal; and,
WHEREAS, issues identified to date include zoning and land use, impact on
neighboring properties, noise, and effects on City electric, water, and sanitary sewer utility
operations as well as other issues; and,
WHEREAS, under Article III, Section 38A of the Iowa Constitution, cities have
home rule authority, and under Iowa Code section 364.1, every city is authorized to
exercise any power and perform any function it deems appropriate to protect and
preserve the rights, privileges, and property of the city or its residents, and to preserve
and improve the peace, safety, health, welfare, comfort, and convenience of its residents ;
and,
WHEREAS, a temporary delay of a reasonable duration is a recognized and lawful
planning tool used by cities and counties throughout Iowa to prevent developmen t from
occurring under perhaps inadequate current regulations while studies and ordinance
updates are being contemplated; and,
WHEREAS, for purposes of this Resolution, “data centers” are defined as “facilities
whose primary service is data processing or data storage, and is used to house computer
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systems and associated components, such as central processing units, graphical
processing units, neural networks, quantum bits, quantum processors, memory, data
routing, data storage, server farm, crypto currency mining or processing, virtual private
networks, virtual servers, artificial intelligence (AI) training or processing, image
processing, cloud computing, email servicing, or any other term applicable to facilities
which are used for such purposes shall be deemed to be a data center. Data processing
as an accessory use to a principal use in the same building is limited to a maximum of
10,000 square feet in order not to be considered a primary use.”
NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Ames,
Iowa, that a six (6) month delay on the acceptance, processing, and approval of any
applications or proposals of all classes of data centers is hereby approved.
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