Palo and Linn County Establish Data Center Nuclear Rules

The Palo City Council approved a new zoning ordinance on July 21, 2026, creating a regulatory framework for future data center development. In a 4-1 vote, the council established rules to ensure any potential development occurs under local terms, particularly if unincorporated land is annexed into the city. Mayor Bryan Busch stated the city will not initiate annexation of the site unless requested by the county or Google.

These legislative moves coincide with Google's interest in annexing Linn County land to build a data center near the Duane Arnold Energy Center. Google has signed a 25-year energy contract with NextEra Energy to purchase power from the plant, which NextEra intends to restart by early 2029.

Simultaneously, Linn County is managing an 18-month moratorium on data center applications in Exclusive Use 3 zones. However, the Linn County Board of Supervisors is considering an exception that would allow data centers to operate as accessories to nuclear plants in EU-2 zones. Planning and Development Director Charlie Nichols presented this proposal to the Planning and Zoning Commission, suggesting such an exception would support the nuclear plant's restart. Draft language for this exception is expected by August 17, 2026.