by Clarke Davis
A proposal to develop a commercial data center about a mile north of McLouth along the east side K-92 highway will go before the Jefferson County Regional Planning Commission Monday, Feb. 27.
Because of the interest it has drawn, the meeting has been moved from the courthouse to the Oskaloosa City Hall. It will also be available over Zoom at the following link; https://bit.ly/JeffCoPlanningZoom
The meeting is set for 7 p.m. and there are at least three zoning cases before the commission.
The request is being made by Crypto Colo Center Corp. on behalf of the property owner, Dei Vitae Enterprises LLC.
Development costs are projected to be $1.86 million and the data center will employ 35 people.
“In short, the applicant is proposing a small scale data center that utilizes metal storage shipping containers to house the computer components needed for the data center. Those containers are proposed to be powered by generators fueled by natural gas that is produced on site,” Dustin Parks, Jefferson County’s community development director, explained.
“That said, Jefferson County does not have regulations relating specifically to data centers,” Park said. “The case (CU2023-02), at least from a zoning perspective, is about the change in use from agricultural to commercial/industrial and the structures being proposed for the change in use.”
The Data Center “use” is not a part of the case because of the previously mentioned lack of regulation.
Further, the actual data itself is not something we regulated at this level of government. That falls under federal jurisdiction, he explained.
The site is presently zoned as agricultural, and under Jefferson County zoning regulations, properties that are zoned agricultural are inherently allowed to have metal storage containers.
The applicant has proposed a two-phase development plan, the first of which consists of 10 metal storage containers with computer hardware installed in them, as well as four generators to provide power for those containers.
The second phase proposes an additional 12 containers, and four more generators. The site plan also proposes gravel to be used as driveways, pads, and pathways.
“The generators are proposed to be powered by natural gas that is produced on site. The state of Kansas does not allow county zoning to regulate oil and gas wells placement or usage and Jefferson County does not have adopted building codes, so our office isn’t allowed to place restrictions specifically on the generators or their proposed source of power,” he said.
While there are a lot of facets to the proposed use, the Jefferson County office can only focus on the change of use, the potential for noise pollution, availability of adequate infrastructure—roads, water, sewer, etc.—and the potential impact the change of use will have on the surrounding area and citizens, Parks said.
The Crypto Colo Center states that its current business offerings include crypto mining companies, but will envolve into more applications in the future.
In its “executive summary,” CCC states, “We specifically would like to point out that Kansas is an important location for us, as it has large deposits of underused pressurized natural gas, and we plan to scale our business by taking over additional gas production leases around our current 81-acre phase one facility.” The facility will have around-the-clock security.
CCC further notes that it will install an internet exchange point — or IXP —which provides more reliable and stable access. Kansas is said to be only one of 17 states without one.
Lauding its assets of land, natural gas, power, and connectivity, CCC states that the “foundational pieces are in place to host a variety of industries and customers, including . . . crypto miners, metaverse, web and financial services, logistics, health, government, and telecommunications.”
This same address, 8974 North K-92, was the scene of an oil tank explosion Dec. 10, 2022. Six rural fire departments responded to the fire that also destroyed a vehicle owned by CCC’s natural gas operator. A saltwater tanker truck was also damaged.