County hears detailed briefing on data centers, urged to use case-by-case negotiation

Oleg Alba, managing partner of municipal advisory firm Acres Strong, told Riley County commissioners on June 4 that data centers vary widely in scale and local impact, and that counties should evaluate each proposal individually rather than adopt a one-size-fits-all policy.

"The scale of the buildout determines the impact," Alba said during a 40-minute presentation, explaining differences between enterprise, hyperscale and tiered facilities and how those differences drive needs for power, cooling, and land. He told commissioners to weigh five core topics: setbacks, noise, architecture, power and water, noting that cooling approaches can dramatically change water demand.

Why it matters: developers are pursuing rural sites for space and lower costs, and counties that negotiate without a clear valuation framework can leave community value on the table, Alba said. He recommended that Riley County require development agreements that include decommissioning bonds sizable enough to fund cleanup if a facility is abandoned, and that communities base benefits on megawatt/compute metrics rather than square footage alone.

Alba illustrated possible local controls — setback buffers or property-line decibel limits to reduce noise impacts from generators and HVAC, architectural treatments to limit visual impacts, and contract language to cap water usage and require monitoring. He also said local officials should insist on financial assurances such as decommissioning bonds before earthwork begins.

Commissioners asked about revenue-sharing structures and whether developers accept pilot payments or franchise fees; Alba said terms are negotiable but require good financial analysis so communities can compare proposed payments with projected facility revenue and operating costs.

What comes next: commissioners asked staff to continue compiling questions and options, acknowledging Alba's point that a rigid resolution may constrain flexibility. No permit or ordinance decision was made at the meeting.