Project Overview
Project West is a new development of approximately 282 acres of land for a future data center project in the City's Southwest Development Corridor. A development agreement between the City of Norwalk and the developer was approved by the City Council on March 5, 2026.
This approval is only for an infrastructure agreement with a land development company, not with a data center. This developer is purchasing land directly from private landowners and will be responsible for building infrastructure at their own cost. Part of the agreement also includes infrastructure work performed by the City and paid for by the developer.
The public infrastructure will serve areas much larger than the area being developed and therefore the City will fund those portions of public infrastructure.
Location: South of Delaware St. and West of Madison St./HWY 28
Estimated Impact
Economic Impact
Total Investment = $12 BILLION
(Private Investment With No Tax Incentives Requested)
Taxable Valuation = $400–500 MILLION
(Upon Full Buildout)
Employment & Job Creation:
80 High Quality Jobs (Full-Time Positions in Engineering, IT, Management, HVAC), 600 Construction Jobs (over multi-year buildout)
Annual Property Tax Revenue:
Once fully built out, the project is projected to generate approximately $5 million per year in new property tax revenue for the City ($15M total to all taxing entities, including the County and schools)
The most effective way to lower residential property taxes is by expanding the commercial and industrial tax base — or by cutting public services. New commercial valuation is what helps stabilize or reduce the burden on homeowners.
We have also communicated with neighboring cities that have established data centers in their communities and found that the overall benefits are significant. West Des Moines Data Center Fact Sheet
Infrastructure Investment
- The developer is funding approximately $8.2M of water and street infrastructure
- The tax revenue from a future data center would enable the City to invest over $20M to expand infrastructure for area development and protect Norwalk's future growth plan
Incentives
No property tax incentives are included in this development agreement. The only incentive in the development agreement is waiver of sanitary sewer district fees ($564K), due to the heavy investment being made by the developer in the system.
Frequently Asked Questions & Concerns
The following questions and concerns have been gathered directly from resident emails, social media comments, public meetings, and conversations with City staff. We have done our best to provide clear, factual answers to each.
Utilities & Infrastructure
Is infrastructure sizing based on full buildout or phased construction?
Full buildout. Engineers are using the best estimates of land use and usage to determine infrastructure sizing.
What is the maximum electricity demand (MW) of the Data Center, and will the developer fund necessary grid upgrades to prevent utility rate increases for residents? Will new high-voltage power lines or substations be constructed through residential areas?
Power use is determined between the power provider (MidAmerican) and the user/developer. The City does not regulate the electric utility as this is a private industry.
MidAmerican’s data center agreements are specifically designed to protect existing customers. Learn more from MidAmerican:
How many millions of gallons of water will this facility use daily/annually, and will it impact local potable water supply during droughts?
We don’t yet have a proposed project to answer this question. However, the development agreement approved March 5, 2026 included 400,000 GPD (gallons per day) of industrial reserve capacity for future use by a data center within the development site. All water usage can impact water supply during droughts. Norwalk’s biggest challenge is the amount of water used to irrigate lawns. Peak summer use is over 1,000,000 GPD more than winter usage with the primary purpose being lawn irrigation.
Will a data center increase water rates?
The addition of a large water user—such as a potential data center—is not expected to increase water rates for existing residents or businesses. In fact, it is our goal to prevent this from happening. The City’s approach is to require large development projects to pay their proportional share for:
- New water infrastructure
- Reservation of water capacity
- Their actual water use
This ensures that the costs associated with new, high-demand users are not passed on to existing ratepayers.
Norwalk has also planned ahead for this type of growth. As part of long-range planning efforts with Central Iowa Water Works (CIWW), the City identified the Southwest Development Corridor as an area for future large-scale commercial or industrial users. Capacity was reserved and secured in advance, including approximately 650,000 gallons per day (GPD) to support this type of development. A current request to reserve 400,000 GPD falls within that planned capacity.
It’s also important to note that the largest category of water use in Norwalk today is residential lawn irrigation.
What will impact water rates in the future?
While a data center is not expected to drive rate increases, there are broader factors affecting water costs across the region, including:
- Nitrate levels in source water, which increase treatment costs
- Drought conditions impacting water availability
- Increasing complexity and cost of water treatment and delivery
Because of these challenges, water rates are expected to increase over time for all users—residential, commercial, and industrial—regardless of new development.
Final water usage for any proposed data center would be determined if and when formal development plans are submitted and reviewed by the City.
Will plant or distribution expansion be required and how will costs be allocated?
We are assuming this question is in reference to water systems. If a future data center needs more water capacity they will be expected to partner with the City and Central Iowa Water Works to fund plant (water source) expansions. The distribution system is being expanded with a 16” water main to provide a secondary feed to the property. This new water system improvement is being funded by the developer and then turned over to the City as public infrastructure.
Financials & Incentives
What incentives or tax exemptions are being offered for this project, and how will any lost revenue be offset for local schools and services?
The City’s only direct incentive for this project is a waiver of sanitary sewer district fees, as outlined in the development agreement approved on March 5, 2026. This waiver is estimated to total approximately $500,000–$600,000 over the full buildout of the site.
It is important to note that these sewer district fees are not taxes. The City is not providing property tax abatements or local sales tax exemptions. Any applicable sales and use tax exemptions would be administered by the State of Iowa, not the City.
The City carefully evaluated sewer district fee waiver incentive in the context of the overall project. In return, the developer is fully funding approximately $6,000,000 in public water main infrastructure, which provides significant long-term benefit to the community. Additionally, future Tax Increment Financing (TIF) revenue generated by the project is expected to offset the cost of the sewer fee waiver over time.
Overall, the limited incentive provided by the City is more than offset by the developer’s infrastructure investment and the projected long-term revenue benefits.
Who is paying for the necessary upgrades to water, sewer, and electrical infrastructure—the developer or the taxpayers?
The developer is responsible for paying 100% of the infrastructure costs required specifically for their project. This includes necessary upgrades and new construction such as water, sewer, and road improvements tied directly to the development.
The City’s role is to construct and oversee these improvements to ensure they meet public standards and regulations, but the costs are fully funded by the developer as the work is completed.
For larger infrastructure projects that may benefit both the development and the broader community, funding will primarily come from Tax Increment Financing (TIF) generated by the project itself—not existing taxpayers.
Additionally, the City has applied for a RISE (Revitalize Iowa’s Sound Economy) grant through the Iowa Department of Transportation (IDOT) to support the extension of Delaware Street. If awarded:
- The RISE grant would cover approximately 50% of the project cost using State fuel tax funds
- The developer would fund the remaining 50%
This roadway is a public benefit, serving residents and the wider area, and is not driven solely by data center traffic. It should be noted that after construction is complete, data center traffic is expected to be minimal.
Overall, the project is structured so that the developer—not existing taxpayers—bears the cost of required infrastructure, while also contributing to improvements that benefit the broader community.
What is the City’s specific financial exposure in the development agreement, and what happens to that public investment if the data center is ultimately not approved?
The City’s specific financial exposure is approximately $1.8M for trunk sewers for Phase 1. Phase 2 is also a City responsibility; however, the agreement allows the City to delay that project until the project can fit within our Capital Improvement Plan (CIP). The City will not pursue Phase 2 until there is significant financial property tax revenue from a data center project.
Environmental Impact
In the event this project impacts or damages the wetlands protected by conservation easements, directly next to the North River at this proposed Data Center site, who will be legally responsible for any damage done to the property, including lawsuits, mandatory restoration costs, fines and attorneys fees?
Norwalk storm water regulations require management and mitigation of stormwater runoff. Damages caused by stormwater runoff downstream is the responsibility of the site owner creating the runoff.
Norwalk owns Serenity Woods Park. This area has a conservation easement over the entire Park. The City is limited in how the land can be changed; however, offsite generation of stormwater that could cause damage is not the responsibility of the conservation easement landowner.
What is the projected "power usage effectiveness" (PUE), and will it use sustainable, non-potable cooling methods?
Electricity is a utility provided by a private company, MidAmerican Energy. These questions should be directed to MidAmerican.
Why hasn't an environmental impact study or economic impact study been done?
Our ordinances do not require an environmental impact study for a data center; however, we have not yet had a proposal to review and make such a condition. If, at the time of a development proposal, Council determines the need to go above and beyond state and federal regulations, it will be considered at that time.
Will the City require a Thermal Impact Study and enforce mitigation measures such as green infrastructure to reduce potential urban heat island effects from the project?
This has not been discussed as an added requirement.
Will the City require a minimum 1,000-foot setback for high-voltage infrastructure and mandate baseline and ongoing EMF testing for properties within 1 mile?
There are no City regulations for EMF testing.
Noise, Air & Light Pollution
What are the decibel limits for 24/7 cooling fans and backup generators, and how will the city enforce these limits at the property line?
The City doesn't have noise regulations related to decibel levels at various distances from uses.
According to the City Code, most of our noise regulations are related to specific cases (Truck Noise on street, Airport Overlay zones, Disorderly Conduct, UTV operation, and Special Uses). In most of these instances, we don't tie the regulation to a specific decibel level, rather we say that noise needs to be mitigated or that a certain type of device is not allowed.
Will the City enforce noise control ordinances by requiring acoustic mitigation measures and continuous 24/7 decibel monitoring at the development’s property line?
The City is currently researching methods of noise control. There are no specific regulations at this time.
Will the backup generators use diesel or natural gas, how often will they be tested, and what air pollution controls are required?
We don’t yet have a proposed project to answer this question; however, generally speaking the EPA is responsible for air quality regulations.
How far will the project be located from homes, and will it comply with "Dark Sky" standards to prevent light pollution?
We don’t yet have a proposed project to answer the first part of this question.
DarkSky International has several core principles aimed at reducing light pollution. Norwalk’s lighting regulations intend to accomplish the same goal of reduced light pollution. The City is further researching DarkSky recommendations to determine if additional regulations would be warranted for a future development proposal.
Zoning, Land Use & Planning
Are there City zoning and ordinance changes being made to accommodate this contract for the data center, if so, what ones?
Prior to 2024, staff had determined that a Data Center use was allowed under the uses identified in the M-1 District, though it wasn't specifically identified within the zoning code at that time. Staff took a zoning amendment forward to create the M-2 district in December 2024. This specifically identified Data Center as a use. For the most part, the requirements mimicked the M-1 standards, though we did address a few things typical to Data Center uses and construction.
What measurement criteria will be used to determine conformity to community standards?
All City codes and ordinances must be followed. If there is no regulation the result would be no criteria to determine conformity.
Why is this project being considered in this area when it is so close to large neighborhoods, an elementary school, and McAninch Sports Complex?
The area is identified in the comprehensive plan as industrial. A data center fits that land use designation. The Comprehensive Plan was created following public input and consideration by City Council.
Has the City consulted with residents about development in this area?
Norwalk sent invite letters to hundreds of residents that live or own property within the planned growth area of the City of Norwalk. This happened in 2019 in advance of the City’s efforts to update our Comprehensive Plan. We held several meetings over several months at City Hall. A strong emphasis was placed on the importance that residents engage in the comprehensive planning process where future land uses would be identified. Ultimately the City continued that comprehensive planning over several years with the Comprehensive Plan being adopted in 2023. This added step of personal invites went well beyond the requirements of citizen consultation.
What is the planned southern alignment for access to I-35, and has a final route been selected?
Norwalk has been exploring alternatives for additional access to I-35. There have been several draft alternatives. Below is the newest revision of the route maps. There is no confirmation of the exact route to be taken. The City will consider safety, cost, partners with landowners and developers to determine the most appropriate path.
Map
Will the City require the primary entrance to Project West and any future road connecting to I-35 be located at the southern boundary, and explicitly prohibit the use of Delaware Street or 50th Ave. for industrial or construction traffic?
Current plans show Delaware as a primary route for future traffic. The City is working on alternatives of the proper alignment of future roadway extensions.
Will the City require a formal Traffic Impact Study in accordance with Iowa SUDAS Design Manual Section 5N-1, and require the developer to post a road maintenance bond to cover potential road damage from construction traffic?
The City will follow current subdivision and zoning regulations to determine the need for a traffic study and bonding.
Project Status & Process
Where is the developer in the planning process for the site work?
The City is aware of primary public infrastructure planning at this time. We have not yet seen a site plan or internal site development plans.
Does the approval of the developer for this site complete the data center project going forward?
We are assuming this question is about the approval of the development agreement that was approved March 5, 2026. If so, no. There are still additional stages of review. This includes subdivision platting, site plan review, building inspections, and other associated reviews.
Will the agreement transfer from a city project to the developer and then the developer has total ownership and responsibility?
The development agreement that was approved March 5, 2026 is between a private developer and the City of Norwalk to outline certain infrastructure responsibilities. The development is a private project that involves a land purchase between private parties.
Governance & Transparency
Are any council members or city staff currently under NDAs that prevent them from sharing any project details with the public?
As of March 5, 2026, no council or staff are under NDAs.
Is there a legally binding, fully funded plan for decommissioning and land restoration when the facility closes?
We don’t yet have a proposed project to answer this question. Our current standards do not address decommissioning.
At what point were residents meaningfully informed that a $12 billion development was under negotiation?
The topic has been addressed at open public meetings beginning in the Fall of 2024. The process associated with Project West mimics the process for many other past development projects. Communication starts with general updates to the City Council at open public meetings. The Economic Development Director and City Manager also discussed the potential for this project at several civic organizations, the Chamber and update meetings with the Warren County Supervisors. Over time the meeting updates become development proposals, development agreement consideration, then zoning review and finally site plan review. Project West just completed the development agreement stage at the March 5, 2026 City Council meeting.
Would Norwalk have entered the CIWW if not for the data center?
The concept of a data center did not play a role in the City’s decision to enter Central Iowa Water Works.