A statewide coalition of economic and political leaders is promoting the development of data centers.
The bipartisan group Growing Iowa’s Economy launched Monday, Aug. 3, and is made up of more than 30 Iowa labor, economic development, business and issue advocacy leaders. The group believes “the development of new data centers is critical to Iowa’s future,” according to its website.
Initial members include several central Iowa organizations, such as the Ames Regional Economic Alliance, the Marshalltown Area Chamber of Commerce, and Alliant Energy.
Ames Alliance President and CEO Dan Culhane said the various organizations saw an opportunity to provide meaningful education about data centers and their economic benefits.
“I think locking arms with groups across the state is a way to better educate the public on projects like this and the opportunities that we think they do present,” Culhane said.
The coalition pledges to hold data centers accountable, pushing policies that force companies to pay for energy use and upgrades to local energy grids.
Alliant Energy “shares the coalition’s belief that growth should be accompanied by strong customer protections, regulatory oversight, community engagement and responsible investment,” Alliant Energy Lead Communications Partner Melissa McCarville said.
“We look forward to working with stakeholders across the state to support thoughtful growth that benefits customers, communities and Iowa’s economy,” McCarville said.
What will the Growing Iowa’s Economy coalition do?
The group will advocate for legislative policies that support “responsible development” of new data centers, according to a news release. Initial action includes sharing their message and expanding the coalition.
John Hall, president and CEO of Marshalltown Area Chamber of Commerce, said the coalition is not simply pro-data center, but rather pro-economic growth. He believes data centers have a place in the overall conversation.
“It’s not to say every data center is the right fit in every community,” Hall said. “It’s saying that instead of this vitriolic response we seem to be seeing in the public space right now to these projects, there is real and considerable economic benefit.”
Iowa coalition wants to dispel data center myths
Data centers have been a hot topic among Ames residents in recent months.
A 100,000-square-foot data center was proposed by Des Moines-based Lightedge for city-owned land near the Ames airport. After weeks of review by the Ames City Council and plenty of public opposition, the council voted to impose a nine-month delay, citing a need for more information and regulations.
Ames is home to two data centers, though one is up for sale with a $4 million price tag.
Hall said many dissenting voices around data centers may not be fully wrapped in correct or modern information. Water usage and minimal permanent job creation are some of the major concerns with a “tremendous amount of fearmongering.”
The coalition’s goal is to research incoming projects and see what fits Iowa’s economic landscape.
“We’re not a group of people that are ‘yes’ to every data center, but we recognize that there are good and bad actors in any kind of space like this,” Hall said. “If we take the right steps and consider the projects in a way that is positive to the communities, these can have a real successful economic impact on the local level.”
Recent data center proposals are often met with pushback thanks to outdated misconceptions.
Though some data centers use “exorbitant amounts of water,” not all modern data centers do, Culhane said.
“I think that’s a reasonable question to ask and respond to in proper fashion,” Culhane said. “But I do think the myth out there is that they’re all the same and they’re not. Every one of these should be judged independently.”
Growing Iowa’s Economy believes data centers will benefit communities
Culhane noted how the sheer amount of property taxes data centers pay into communities is “incredible,” creating a new revenue stream.
“It wasn’t that long ago that data centers in particular were asking local communities for 10 to 20 years of tax incentives, Culhane said. “Those days are gone, so communities and local governing bodies see new revenue right away.”
Culhane suggested that companies building data centers often have the opportunity to invest in community projects, like a rec center, a parking ramp or a homelessness initiative, to prove their worth as a corporate citizen.
“Ames is already a really good place, but there’s always more things that we want to do as a community,” Culhane said.
Ames data center decision delayed despite constituent support
Lightedge’s proposal is a smaller, regional‑scale co‑location facility rather than a hyperscale campus serving national and international companies with large AI servers.
Ames established a 12-step process for additional review, which includes zoning and ordinance changes related to water and electricity use as well as potential noise regulations.
Culhane said it’s “regrettable” that Lightedge got caught up in a “groundswell of concern” over data centers.
“Lightedge was going to support our lending institutions, our healthcare institutions, educational facilities and existing businesses here in the community,” Culhane said. “I think Lightedge would have been a fantastic corporate citizen here in the Ames community and been supportive of many things that we’re trying to get accomplished here.”
Celia Brocker is a government, crime, political and education reporter for the Ames Tribune. She can be reached at CBrocker@gannett.com
This article originally appeared on Ames Tribune: Iowa coalition aims to back data center development across the state
Reporting by Celia Brocker, Ames Tribune / Ames Tribune
USA TODAY Network via Reuters Connect
By Celia Brocker, Ames Tribune | USA TODAY Network
