The Greene County supervisors held a lengthy public hearing Dec. 1 on an amendment to the county’s zoning ordinance naming conditions for the issuance of a conditional use permit for data centers and cryptocurrency mining operations. After 45 minutes of discussion, the first reading of the amendment was approved, but with changes from what was published in the required legal notice prior to the hearing.
The portion that was changed at the request of Midland Power, a partner in the project with Smart Mining, requires a proposed data center or cryptocurrency mining center to provide written verification that it is meeting the requirements of the power suppliers’ tariff requirements (set by the Iowa Utilities Commission) and requirements regarding the safety and sufficiency of electricity.
County attorney Thomas Laehn assured the supervisors that making changes at this stage is allowable, as the minutes of the meeting would reflect the changed ordinance.
Patty Naylor of rural Churdan spoke via Zoom, expressing concerns with the proposed data center. She named the “immense” amounts of energy needed, saying, “there are always social and environmental costs” in using energy. She mentioned the project putting a strain on the electrical grid, noise, and the increased industrialization of farmland.
She noted that residents in Mitchell County recently rejected a similar proposal. “Citizens in Iowa, the Midwest, and even around the world are realizing the harm these facilities do and are pushing back,” Naylor said. “The benefits to our county are miniscule… They do not outweigh the risk.”
She suggested that such a serious issue needs more community conversation before being approved.
Board chair John Muir referred to a letter of concern from Roger Nielson of Jefferson, sent to all supervisors. Muir summarized Nielson’s concerns as being related to OSHA safety standards, and that the portability of the structures containing the equipment would keep them from the tax rolls.
Greene County Development Corporation director Greg Piklapp spoke on behalf of the project. He noted that the noise level named in the proposed ordinance is the equivalent of an outdoor air conditioner. He said such installations “are coming whether we want it or not to Iowa because it is a growing industry to the state. It’s growing tax base, it’s growing employment, it’s growing everything else.”
“It’s no different than any other industrial/commercial project that we would bring to Greene County as GCDC, providing resources, but also protections to Greene County residents, and working with the county and city officials to make sure they’re in place,” Piklapp said. He added that the public at large has been supportive of the proposed project and the protections put in place with the proposed ordinance.
Adam Haynes, founder of Simple Mining, the company proposing the project, said he understands concern about a new project. “We’re definitely trying to approach this in the correct manner, work with local leadership to develop an ordinance that makes sense for everybody. We definitely don’t want to cause any problems. We want to be a good neighbor and look for a win-win-win scenario,” he said.
He said Simple Mining has about a dozen facilities across the state. They’re unique in that they use an interruptible rate structure, so that at times of peak electricity demand, like on a very hot summer day, the facilities shut down. The company can reduce 98 percent of its electricity load within minutes to put energy back into the grid. He said that on a very cold day like Monday, they curtail facilities because of the energy needed for heating.
Haynes said three safety inspections must be completed before a facility goes online. “There are misconceptions, misunderstanding about what we are and what we do… We’re looking to utilize some land and take advantage of an opportunity with the utility company that should be a win-win-win for the county,” he said.
Because the structures are portable and not required to pay property taxes, Simple Mining will make a payment in lieu of taxes, or PILOT. The PILOT will be approximately $50,000, roughly equivalent to the taxes paid on a building valued at $2.5 million.
Piklapp then pointed out that the proposed ordinance requires restoration of the property if the facility is closed. Haynes offered to put up a bond to cover that possibility.
The draft ordinance calls for capping noise at 65 decibels as a daily average. Water usage is capped at 15,000 gallons per month. Piklapp said an “average” family of five uses 10-12,000 gallons of water per month. The supervisors approved the first reading of the amended ordinance. Two more readings are required before it is adopted. See the minutes posted under the Calendar/Agenda tab to read the ordinance, including the change from the earlier version published as a legal notice.
