Zach Lahn Proposes Data Center Moratorium in Iowa

Republican nominee for governor Zach Lahn proposed a temporary moratorium on new data center projects during a Monday address to the Iowa Association of Business and Industry in West Des Moines. Lahn stated the pause is necessary to establish rules of the game and ensure developers demonstrate how their projects benefit Iowa citizens. While he rejected an outright ban, he suggested raising taxes on these facilities fivefold to lower property taxes and eliminating existing tax incentives.

Lahn's economic platform emphasizes an Iowa first approach, which includes requiring data centers to pay for their own electricity and invest in local water infrastructure, such as nitrate removal systems. He also advocated for restricting foreign workers by banning H-1B visa holders from state government and university employment, and called for state-level regulation of AI-powered Flock surveillance cameras.

Democratic candidate Rob Sand criticized Lahn's residency in Kansas but proposed a similar focus on data center transparency. Sand's plan includes mandatory public hearings before project approval and requiring facilities to cover additional electricity costs to prevent consumer price hikes. Nicole Crain, president of the Iowa Association of Business and Industry, stated the organization is not taking sides, emphasizing the need for reliable energy and infrastructure investment.