City panel to take up data center issue Tuesday

FORT MADISON - The City of Fort Madison’s Planning and Zoning Commission will be hosting a public meeting Tuesday evening with agenda items around the proposed project on the hillside off Business 61.
For the first-time ever, property owner Dustin Wolgemuth has stated that the proposed project will be an AI Data Center. Wolgemuth stated this in a letter to Fort Madison City Manager Laura Liegois dated Saturday.
“As we have discussed, there has been a great deal of speculation regarding the proposed AI data center at my property located at 2201 S. Business 61 South,” Wolgemuth wrote. “I believe it would be helpful if the following information could be shared with the public to address some of the most frequent questions and misconceptions.”
Wolgemuth, who has owned and operated multiple businesses in southeast Iowa over the past dozen years, in his letter outlined some misconceptions about data centers and their impact on local communities. He also addressed Lee County Supervisors earlier this year about the project, but didn’t allude to what the project actually included.
Supervisors passed a resolution to implement a moratorium on data center construction in the county until more information on impacts to the county could be determined. Lee County is currently working with Southeast Iowa Regional Planning Commission on language for data centers.
Liegois said Wolgemuth first approached SIERPC in August of 2025 about plans for a bitcoin mining facility on the property.
The project has become a topic on local social media channels and in several articles written by Pen City Current. In his letter to the city he said he “welcomes those conversations” and “appreciates the opportunity to provide accurate information.” Wolgemuth has declined several requests for comments and stories on the project.
Concerns around data centers nationally and locally are electrical and water impacts, noise, and site activity.
Wolgemuth wrote the concerns are unfounded. He wrote electric rates are determined through the utility and regulatory process—not by a single customer connecting to the grid. Any large electrical service must be reviewed, engineered, and approved by the utility before power can be provided.
Regarding water, Wolgemuth wrote, “no final cooling system has been selected. Modern data centers utilize a variety of cooling technologies, and water requirements depend on the final design. Any utility services would be coordinated through the appropriate providers.”
Concerns of environmental groups are that the facilities consume vasts amount of water that could be returned contaminated to reclamation points or discharged into municipal systems.
Regarding noise, Wolgemuth didn’t say there wouldn’t be noise but wrote engineering and current design standards emphasize noise reduction.

“Modern AI data centers are enclosed with buildings. Noise mitigation is a standard part of facility design through building construction, equipment placement, and sound attenuation technologies,” he wrote.
He also wrote that the project isn’t heavy equipment oriented after completion and, once in place, could be an economic driver for the city and county.
“Our vision, our goal, is to attract a world-class technology investment to Fort Madison and Lee County. Artificial intelligence infrastructure is becoming one of the fastest-growing industries in the world, and communities that are prepared to support these investments will be well positioned for long-term economic growth,” Wolgemuth wrote to the city.
The Planning & Zoning Commission is meeting Tuesday to begin a review of proposed ordinances related to extraterritorial jurisdiction, which is allowed under several Iowa laws.
Residents can watch the meeting live at the following link: Click Here to Watch the Planning and Zoning Commission Meeting Live and can submit comments at this link: Click Here to Submit Comments and Feedback.
Liegois said community members are encouraged to review the information and participate in the public process.
Liegois said the city currently doesn’t control the two-mile jurisdiction adjacent to city limits.
“Over the past year, we (city staff) have heard about this site being a Bitcoin mining site, a storage unit site, a pocket neighborhood of tiny homes, and an AI Data Center. As of today, it is the understanding of the City that there is a Letter of Intent from a company on the site, with Mr. Wolgemuth, for use of the land that is being developed. The scale of the project is considered small and does not compare to industrial size data centers, which are being seen on social media. 
However, two parcels of land in the project are within city limits and Liegois said the city can only regulate those parcels.
“The City can only regulate the two parcels in the city limits to create a buffer zone for the community, with parking, landscaping, and other items that distance the community from the structure being built as of today’s situation,” Liegois wrote on the city’s website."
The project could also be annexed into the City and be part of the community to help support services that are needed in the community with tax revenue. Each community/economic development project brought to the City of Fort Madison is reviewed with the details of utility needs, noise, odor, and other items that could affect neighboring properties. Zoning codes are put into place to zone correctly and often require a special use request for certain facilities with the Board of Adjustment." 
"No matter what the next steps are for the City, the Planning and Zoning Commission will review and develop ordinances that will affect the future of Fort Madison and make recommendations to the Fort Madison City Council for approval of the Extraterritorial Zoning and High Infrastructure Impact Developments." 
Any recommendations from the Planning & Zoning are forwarded to the Fort Madison City Council for action.