USA – IOWA Trends and Developments Contributed by: David M. Erickson, Christopher S. Talcott, Amy S. Montgomery and Shannon M.H. Hasse, Dentons Davis Brown PC
disasters by developing data centres in multiple locations within a community. Low latency, or the ability of the data centre servers to process a high volume of data with minimal delay, is another important considera - tion for data centre developers. For this reason, many early data centres were primarily built in technology hubs near major cities. However, such sites are not always a practical location to address the growing demand for data centres. Iowa’s location in the centre of the United States makes it a prime setting for data centre siting. The state’s central location makes it easier to distribute content to large Midwest markets such as Chicago, and further allows data to move quickly from coast to coast. Energy/Power Availability Data centres consume large volumes of electric - ity to power servers and IT equipment along with supporting infrastructure. As such, the availabili - ty of power is a key consideration for data centre site selection. Iowa has an extensive history of support for renewable energy production, name - ly wind energy, and the state consistently ranks as a top state for wind energy production per capita, making it an attractive site for develop - ers. In fact, some local zoning ordinances spe - cifically provide for the use of renewable energy to support industrial data centre projects. In the absence of such ordinances, local munici - palities tend to accommodate reasonable and innovative onsite power generation activities, such as geothermal and nuclear power. As fur - ther evidence of this support, during the 2025 legislative session, Iowa Governor Kim Reyn - olds introduced an energy bill to the Iowa leg - islature aimed at supporting increasing energy demand through measures such as flexible rate tools to attract large energy-using customers to
the state, and encouraging the development of energy projects that make use of nuclear reac - tors and energy storage facilities. The legislature adjourned without taking action on the Gover - nor’s proposed energy bill. Water Data centres require a substantial volume of water for purposes of cooling vast amounts of servers and other IT equipment that generate a significant amount of heat. As a result, despite Iowa’s abundant water resources, data centres in Iowa and around the world have been criti - cised and received pressure in recent years to limit water consumption. Most data centres in Iowa draw water from underground aquifers, rivers and lakes, which, in theory, can result in competition for water resources depending on the density of heavy water-consuming facilities surrounding a data centre, along with possible irrigation needs of farmers during drought years. While the concern over depletion of resources is warranted and an important global issue, the reality is that many data centres prioritise sustainable efforts to protect valuable natural resources such as water, upon which data cen - tres rely to operate. Data centre developers work closely with local water utilities to understand water capacity needs and availability, and such parties typi - cally engage in significant engineering studies to ensure that there is sufficient water capac - ity to support data centres and other surround - ing users. Beyond this, many developers utilise innovative, sustainable practices to limit their water use and avoid depleting this important resource. Some of these measures include: • efficient water cooling technologies; • free-cooling systems that utilise outdoor air for cooling;
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