Unpermitted wells at $750M QTS campus draw county penalty, state scrutiny

The largest private development in Cedar Rapids history is under regulatory scrutiny after a contractor drilled up to 40 dewatering wells without permits at the future QTS Data Center campus.

Linn County Public Health announced August 5 it is seeking a $20,000 civil penalty against Northern Dewatering, the Minnesota firm that drilled the wells between May 20 and June 11. The wells sit on multiple parcels at 4300 76th Avenue SW, where QTS is building a 612-acre campus within the Big Cedar Industrial Center near Fairfax.

County staff discovered the first unpermitted well June 24 during a scheduled inspection. The investigation found Northern Dewatering skipped the permit process, the permit fee, and the required 24-hour notification. Pumping started June 9.

Weeks later, Iowa DNR staff visited July 17 and documented water withdrawals topping 25,000 gallons per day — a volume that triggers state registration requirements. The DNR has not said whether it will pursue its own penalty.

QTS, owned by Blackstone, says the structures are temporary sumps for sewer installation, not deep wells, and do not tap the aquifer that supplies municipal water. The company says no sumps run simultaneously and each is closed after local work finishes. The finished campus will use waterless cooling.

The Cedar Rapids City Council approved the development agreement in February for the $750 million project. Fairfax leaders previously voiced concerns about well permitting in the area. Northern Dewatering has not commented publicly. The Linn County Attorney's Office has not confirmed whether it has issued the citation requested by public health officials.