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Project West
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, Tract, 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.
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.
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 tax incentives are being offered for this development.
The only incentive offered 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.
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
Water, Power Usage, & Infrastructure Concerns
Water
In Iowa, data centers pay in advance for new water infrastructure to be built, the reservation of allocation, and actual use. These costs are not passed on to existing rate payers. Norwalk's heaviest use of water is residential lawn irrigation systems.
Norwalk is a member of Central Iowa Water Works (CIWW) and performs long-range planning methods to determine future community growth and potential need.
Norwalk previously planned for future large water users within the SW Development Corridor and reserved/paid for 650k GPD in anticipation of a large commercial/tech/industrial development. This land development company requested to reserve 400k GPD, well within the City's capacity and plan. Actual use/need will be determined when a future data center submits official plans to the City.
Do data centers contaminate water supplies?
Data centers do not release nitrates, pesticides, manure, or industrial chemicals into waterways. The main water concerns are:
  • Water usage for cooling
  • Fuel storage risks (similar to hospitals, schools, and other large facilities). These risks are managed through containment systems, monitoring, and environmental permits.
Electricity
There is a common concern that a data center project will raise electric utility costs. In Iowa, developers work directly with the utility provider for power and gas, and are fully responsible for the costs of infrastructure and consumption.
Iowa is a rate-controlled state, and providers must submit increase requests and reasoning to the Iowa Utilities Commission.
Rates are not raised for existing payers due to data centers. In fact, MidAmerican Energy has not raised its base rate since 2014. Data centers have been in Iowa since 2007.
Roads & Sewer
The land developer will pay for new infrastructure, such as roads and sewer upgrades required for their project. The City will construct the infrastructure projects so they are built to public standards and meet city regulations. However, the developer pays for 100% of their infrastructure costs as each project begins construction.
The City is also submitting a RISE grant application to the IDOT, which would pay for ½ costs of the extension of Delaware. The developer covers the other half.
Delaware is a public road that is used daily by residents and non-residents of Norwalk and Warren County. After construction, there will minimal traffic use caused by the data center.
Zoning
The Project West development land is zoned as a Norwalk Technology & Industry Overlay District (NTI) within the M-2 Zoning District. The Norwalk Technology and Industry (NTI) Overlay District is intended to support Norwalk’s economic growth by promoting large-scale technological, clean industrial, and high-tech manufacturing uses through the efficient development of land, private infrastructure investment, and generation of high quality jobs. An alternative approval process is necessary because of the nature and unique demands of large-scale development. This approval process ensures Council involvement yet expedites review of specific development details.

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CODE OF ORDINANCES OF THE CITY OF NORWALK, IOWA

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We understand that large projects generate questions, and we are committed to sharing accurate, timely information as the process moves forward. We appreciate the community's engagement and encourage everyone to seek information from verified City sources as the process moves forward.
For the most accurate and timely information, we encourage residents to be involved by attending public meetings and communicating directly with the City personnel and elected officials. We are always happy to meet in person and also welcome phone calls and emails anytime.