Highlights

• New online tool helps local leaders determine if data centers are right for their community.
• Data centers can bring jobs and tax revenue, but they often face opposition for their size and use of water and energy.
• The Data Center Decision Tool provides a neutral framework. 

The University of Iowa has unveiled a new online tool local governments can use to evaluate the impact of proposed data centers on their communities before they make key decisions. 

The Iowa Data Center Decision Tool for Counties, Cities, and Communities is a practical, neutral framework that helps communities decide if a data center is right for them. Data center developers face increasing opposition from residents in many communities where they’ve been proposed, putting local leaders between lucrative development opportunities and unhappy constituents.  

Amy Colbert, professor of management and entrepreneurship in the Tippie College of Business and director of the university’s Social Impact Community, said the tool doesn’t advocate for or against development. Instead, it helps communities ask important questions about infrastructure, water and energy resources, land use, economic development, taxation, emergency services, and community priorities.

The tool helps communities weigh both opportunities and potential challenges. Data centers can provide economic investment, tax revenue, and infrastructure improvements, while also raising important questions about water use, electricity demand, roads, emergency services, land use, and long-term planning.

Because every community is different, and there are several types of data centers, the tool emphasizes that each proposed project should be evaluated individually.

“We consistently heard that communities wanted help understanding what they didn't know,” said Jennifer Terry, director of the Hubbell Environmental Law Initiative in the University of Iowa College of Law. "Many local governments are encountering these proposed projects for the first time. This tool serves as a risk management resource by helping communities identify issues they may want to consider before making long-term decisions."

The tool can be helpful for leaders anywhere but is designed in particular for Iowa communities. The state has become one of the most attractive locations for data centers in the country due to its flat and affordable land, relatively low energy costs, limited historical drought, and lower construction and labor costs. Large energy and water utilities already serve substantial data center demands, signaling a welcoming environment for expanding or building new data centers. 

The tool was developed by the College of Law and Tippie College of Business. It can be accessed at https://heli.law.uiowa.edu/projects/datacentersiniowa.

Media Contact:

Tom Snee
Media Relations Specialist

319-384-0010 (o)
319-541-8434 (c)
tom-snee@uiowa.edu