Google is looking to annex the site for its Linn County data center campus in Iowa into the nearby city of Palo.

The $1 billion project was previously set for unincorporated land in Linn County, but Google is now aiming to see the 545-acre site become a part of the City of Palo.

Palo is also a part of Linn County, which is in itself just northwest of Cedar Rapids. However, by relocating, the application will now go to the City of Palo’s board, instead of the Linn County board of supervisors.

The project is planned for land near the Duane Arnold Energy Center, and would see six data center buildings constructed.

With the annexation application ongoing, the regional water study required for the project has also been put on hold, reports KCRG.

The water study is necessary, as per an ordinance approved by the Linn County board in February requiring large projects to complete a detailed study looking at water usage, where it will come from, and the impact on groundwater and surface water.

The ordinance also requires developers to sign agreements regarding setbacks, lighting, noise limits, and traffic impacts.

Board of supervisors chair Kirsten Running-Marquardt said that the decision to move locations was to “bypass the protections that we put in place in our ordinance.”

Google had previously told Running-Marquardt that the data centers would use some 12 million gallons of water per day taken from the Cedar River.

Supervisor Sami Sheetz added: “I assume as they’ve done across the country, they’re looking for less regulation when it comes to water specifically, and to pay less money to provide a larger return.”

DCD has contacted Google for comment.

In June 2025, Google pledged to invest $7 billion in expanding its data center footprint in Iowa. The company said at the time that this would go towards the development of a new campus in Cedar Rapids and the expansion of its existing campus in Council Bluffs.

While Linn County specifically may not have seen many applications, Cedar Rapids as a whole is currently developing a QTS data center that broke ground in August 2025. Google is also working on a $576 million project on the southwest side of Cedar Rapids.