Marshalltown council approves first reading of temporary data-center moratorium

The Marshalltown City Council voted on Aug. 10 to approve on first reading Ordinance 15123, a temporary moratorium that would pause the acceptance, processing and issuance of permits and approvals for new data centers and substantial expansions. Assistant Director Clayton Ender told the council the moratorium is drafted to expire Nov. 23, 2026 — four months after a July 13 motion that began the pause — and would allow staff and the Planning and Zoning Commission to finish technical reviews and draft regulations.

Ender emphasized what the ordinance would and would not do: “We can give guidance and invite developers to be part of the process, but we cannot accept their applications,” he said, and read the ordinance’s long definition of “development approval,” which includes zoning amendments, special-use permits, site plans and building permits. He also said Planning and Zoning had recommended adopting the temporary ordinance and waiving second and third readings so the city could move quickly into drafting rules.

The public hearing drew dozens of residents and stakeholders, many urging a pause to allow time for studies of electrical demand, water use, noise and emergency power systems. “It would not just be in our backyard, it would be in our front yards and our side yards,” said Zachary Hamilton, a nearby landowner, arguing a moratorium would give residents and officials time to set guardrails. Supporters said four months is a commonly used interval for focused review; opponents warned that lengthy pauses can deter investment unless the city remains actively engaged with prospects.

Council members split over process questions after the hearing. A motion to waive the second and third readings carried on a simple majority but did not meet the ordinance’s 70% threshold for waiving readings and therefore failed; the city attorney explained the legal requirement. As a result, the moratorium stands approved on first reading and will return to the council for two additional readings before taking effect.

What happens next: staff will continue the Planning and Zoning Commission work sessions, consult utilities and hold public roundtables while the ordinance proceeds through the remaining readings. Ender and staff said they will maintain communication with prospective developers while refraining from accepting formal applications during the moratorium period.