A crowd gathered in Salix’s city park on Monday night in opposition to a potential data center.
Less than 24 hours later, many of those same concerns were echoed inside the Woodbury County courthouse, prompting supervisors to voice support for a one-year moratorium on future projects in unincorporated areas while they develop regulations.
The debate began after the town of Salix voluntarily annexed about 900 acres of farmland in April.
Last week, MidAmerican Energy confirmed the location is being considered for a data center. The company said its affiliate, Midwest Capital Group, acquired options on the property and plans to transfer them to a future electric customer for development. In the statement released to the Salix mayor and city council, MidAmerican said it's in confidential discussions with prospective customers.
Data center discourse spreads across Iowa
The controversy in Woodbury County comes as communities across Iowa grapple with how to deal with data centers, which are rapidly expanding to meet demand for artificial intelligence.
On Tuesday, in neighboring Plymouth County, supervisors approved a revocable one-year moratorium while they decide how to handle the issue. Other counties in Iowa have strengthened their restrictions by passing temporary bans or stricter zoning ordinances. For example, Linn County requires developers to complete water use studies and comply with mandatory setbacks and noise limits.
Woodbury County Supervisor Dan Bittinger said federal tax incentives through President Donald Trump’s One Big Beautiful Bill Act have accelerated data center development nationwide. This includes allowing companies to quickly depreciate equipment costs.
“It’s all taxation on the people, whether you like that or not,” Bittinger said. “I don’t think we would be having this conversation if there weren’t tax credits.”
Residents question annexation process
People who live near the proposed site in Salix told supervisors on Tuesday they were never notified about the annexation.
Janet Yanak, whose property borders the site, urged county leaders to act even though the county no longer has jurisdiction over the annexed land.
“To ensure that another project doesn't appear before the supervisors have enacted strong regulations to protect our county and our environment," Yanak said. “No data center is worth the life and health of one person.”
Supervisors want residents to help shape any future regulations through a series of public meetings.
“The county was blindsided as well,” Board Chair Mark Nelson said. “We’re trying to create a process where people can help us dictate what happens to the rest of the county going forward.”
Salix officials have said the property would still need to be rezoned from agricultural use before development could move forward.
Growing opposition to data centers
Monday night’s gathering in Salix — a town of 295 — drew more than 150 people, most of whom opposed the project.
Steve Corey, who lives near the proposed site and serves on the Woodbury County Zoning Commission, helped organize the public meeting.
The following day, Corey presented a petition to the supervisors signed by residents and supporters.
“Everybody here, and even all of you, are all in the same boat in regards to the lack of clarity, the lack of transparency, the lack of communication and almost the attempt to keep this information from us,” Corey said.
He argued that annexing the land allowed developers to avoid county oversight that had previously been applied to wind and solar projects.
The issue crosses party lines
The controversy appeared to unite people from varying political viewpoints.
Former Republican U.S. Rep. Steve King also addressed the crowd, framing the issue as part of a broader fight over land use and government incentives for large-scale development.
King, a long-time opponent of the Summit Carbon Solutions' carbon dioxide pipeline, asserted that developers should cover the full cost of projects rather than rely on taxpayer subsidies.
“You've been flooded, you've faced blizzards, you've faced all kinds of calamities, and here you stand, a tight-knit community, and one that wants to see your children stay here and raise your grandchildren here," King said. "And it's threatened by this proposal of a data center."
Residents also voiced concerns about property values and the loss of agricultural land.
“We’re going to take 900 acres of prime Iowa farm ground out of production to put in a data center to make rich people richer,” Yanak said.
Yanak added she recently visited a major data center in the Omaha metro area and came away deeply troubled.
“It's terrible, the vibration is there, and the sound is there 24 hours a day, seven days a week,” Yanak said. “It's very detrimental to your health — your mental health, your physical health.”
Supporters cite jobs and economic growth
Not everyone at Monday night’s gathering opposed data centers. In another area of the park, union leaders shared information highlighting the benefits of data center development.
Chad Small, a business representative with International Union of Operating Engineers Local 234, said projects like these can bring new economic activity to a community that’s struggled to grow over the years.
“These are great jobs — benefits, pension,” Small said. “There isn’t even a gas station anymore. There used to be two auto body places, two bars. You know, the biggest landowner in town is the Catholic Church, and they don’t pay taxes.”
Small, who grew up in the Salix area, also believed misinformation has circulated about the industry’s use of natural resources and the impact on the environment.
“Everybody needs to get together and just make sure it’s done right — that’s plain and simple,” Small added. “The water’s monitored, everything’s monitored on these things. They have plenty of water supply and won’t need to drill holes for aquifers.”
After the Woodbury County Board of Supervisors meeting, MidAmerican Energy released a statement to IPR News that says, in part, "If the project does move forward, it would only do so under a structure that protects our existing customers. The customer at the site would be required to pay the full cost of infrastructure and any questions on local land use would be addressed through the normal public process."
Woodbury County supervisors expect to formally consider the proposed moratorium at their meeting on June 23. They also want the county attorney’s office to review whether Salix followed state law during the annexation process.
But the process has been anything but normal, according to Woodbury County Supervisor Matthew Ung, who said that even if no laws were broken, the spirit of transparency was not upheld.
“I have a ton of heartburn about this process,” Ung said. “We don’t want another community to say, ‘We’re going to increase the size of our town eightfold overnight without notifying residents.’”
