Data Center Developer Backs Stricter Rules in Peosta Amid Resident Opposition

PEOSTA, Iowa — A regional data center developer announced support for stricter municipal regulations during a packed Peosta City Council work session Wednesday night, navigating widespread local opposition to a proposed hyperscale data center in Dubuque County. Developer Jim Conlan, who is partnering with Karis Critical to build the facility south of Highway 20, urged the council to draft a clear, rigorous ordinance addressing environmental and utility concerns. "We want you to address the water, the noise, that there will be no rate increases. Penalize us if we do not adhere to it. Build a strong ordinance," Conlan told the council. "We are not going away, so if the ordinance takes a year, it takes a year." The proposed development has met significant resistance from local residents. A recent online survey conducted by the city of Peosta revealed that 87% of the approximately 300 respondents do not support any data center development within the municipality, and 60% see no benefit in bringing such a facility to the area. During the public forum, resident Stephanie Grutz expressed skepticism regarding the long-term impact on taxpayers, questioning how the city would handle potential litigation or abandonment if the project fails. To address concerns over potential utility rate increases, Kiley Miller of Alliant Energy stated that the developers would be responsible for infrastructure costs, asserting that the project would not increase household energy bills or compromise power reliability. Peosta City Council Member Jeff Buxton emphasized the council’s commitment to its constituents over the developers, stating, "We don’t work for Jim Conlan. We work for the citizens of Peosta." The City Council plans to hire an independent consultant to draft regulatory policies. In the interim, officials indicated the city may extend its current moratorium on data center developments, which is scheduled to expire in December.