Palo council advances data center ordinance on 4-1 vote

The Palo City Council voted 4-1 on Monday, July 13, 2026, to approve the second of three required readings for a data center ordinance.

The meeting was moved to a larger venue to accommodate more than 100 attendees, the majority of whom opposed the ordinance.

Palo Mayor Busch stated that future steps for the project include annexation and a development agreement, neither of which are currently in place.

Council member Van Kerckhove said the project could change the city's narrative. "This has a huge impact for the city of Palo, and I think Doug can speak to this; I mean I remember a time just a few years ago when we were trying to fix one of our mowers as opposed to buy a new one, and this can really change that narrative."

Linn County resident Wally Taylor criticized the process. "It’s disappointing that in your five weeks of alleged research, you apparently made no effort to try to change the ordinance or try to make a better ordinance. Your focus seemed to be on trying to convince all of us that data centers are great things."

The council had initiated a five-week pause to research data centers before the vote.