Implementation of a proposed 900-acre data center by MidAmerican is taking shape in Salix, Iowa despite fierce opposition. Energy company MidAmerican is interested in developing a campus on the land parcel, which was annexed by the Salix City Council from Woodbury County back in April. In a letter sent to the Salix City Council on June 8, MidAmerican provided insight on the project.

It said that the site, bounded by Old Highway 75, 260th Street, and Charles Avenue, was “being evaluated for possible development as a data center site. “MidAmerican’s involvement to date has focused on identifying and securing a site that is well-suited for a large electric customer…”the firm noted. It also noted “MidAmerican’s affiliate, Midwest Capital Group, Inc., has acquired options on the property for the purpose of transferring the property to a future customer that would develop the site.”

At the time, according to MidAmerican, no end-user customer had been chosen. However, any customer would be “required to pay the full cost of the infrastructure needed to serve its load – including generation, transmission, and substation investment.” They would also pay the approved electric rates that apply to a customer of this size.” Another project taking shape not far in Ohio is the Intel Ohio One Chip plant, a related artificial intelligence facility that will facilitate the production of semiconductors. Such projects highlight the rampant development and growth of the AI industry.

Outlook on the MidAmerican Data Center in Iowa

Despite advancements on the MidAmerican data center in Iowa, opposition is fiercely mounting. Moreover, Salix officials said on June 10 that MidAmerican had yet to submit a rezoning application for the project. “Many residents spoke of their continued concerns,” reads the Salix City Council meeting minutes for June 10. “They have many concerns of a data center coming in, and the negative effects it may have on our city.

Many also have homes near the annexed land, and do not want industry/commercial developments near their homes.” Nonetheless, only two spoke in favor of the annexation, according to the minutes. A petition against the facility has received more than 540 signatures at the time of writing. Woodbury County, which previously had jurisdiction over the 900-acre parcel, passed a moratorium on data centers on June 23 following backlash to these proposed plans.

This will not affect MidAmerican’s plans, but it will prevent data centers from being approved in unincorporated county land. MidAmerican provides energy to most of Iowa and parts of Illinois, South Dakota, and Nebraska. However, it is unclear how many data center projects it has been involved in.

Project Overview

• Project Size: 900 acres
• Location: Salix, Iowa
• Developer: MidAmerican Energy
• Status: Under evaluation

Scope

• Proposed large-scale data center campus
• Site annexed by Salix in April
• Land to be transferred to future customer
• End-user yet to be selected
• Customer to fund required infrastructure

Project Benefits

• Potential major investment in the region
• Could support future digital infrastructure
• Infrastructure costs covered by customer
• May create jobs and economic activity

Community Concerns

• Strong local opposition to the project
• Over 540 signatures on petition
• Residents oppose nearby industrial use
• Concerns over impacts on homes and community

Key Developments

• Rezoning application not yet submitted
• Woodbury County also approved data center moratorium
• Moratorium does not affect annexed site
• Public debate expected to continue

Outlook

• Project remains in early planning stage
• Future developer still unidentified
• Local opposition likely to influence approvals
• Also rezoning decision will be the next major milestone