CUSTER COUTNY – The Custer County Board of Supervisors have approved the zoning regulations for data centers and established a 12 month moratorium on battery energy storage systems as the county continues developing rules for emerging energy and technology projects.
Data Center Regulations
During Tuesday’s meeting on October 13, 2026, supervisors approved Resolution 77Z-26, adopting Section 7.21 of the county’s zoning regulations to establish standards for the siting, construction, operation, maintenance and decommissioning of data centers.
The regulations address potential impacts on agricultural land, groundwater, noise, lighting, traffic, utilities and emergency response.
The approved amendments also establish requirements for community benefit agreements for data centers with peak electricity demand of 10 megawatts or more, as required by Nebraska law. The county may also require agreements for smaller facilities when authorized by the zoning regulations.
Community benefit agreements may include commitments for road and infrastructure improvements, emergency response funding, public safety training, utility impact mitigation and environmental monitoring.
The regulations also define when a data center is considered abandoned. A facility will be deemed abandoned if data processing operations cease for 12 consecutive months. Temporary testing, maintenance, emergency or nominal operations will not interrupt that period. Abandoned facilities must be decommissioned and returned to a condition compatible with surrounding property and the approved decommissioning plan.
“I would like to take a minute to thank Darci Tibbs, the planning commission, and Steven Blowers for the work they have put in for doing such a thorough job,” County Supervisor, Tammy Kleeb said.
Battery Energy Storage
The board also approved Resolution 78Z-26, establishing a 12 month moratorium on accepting, processing or approving county zoning applications for new battery energy storage systems or expansions of existing facilities within the county’s zoning jurisdiction.
The resolution cities potential concerns involving fire safety, emergency response, electrical infrastructure, land use, noise and setbacks. It gives the county additional time to review state and federal requirements, consult with agencies and emergency responders, and develop appropriate zoning regulations.
The moratorium will remain in effect for 12 months starting today, October 13, 2026 unless the board repeals, amends or replaces it sooner.
Commercial Valuation Contract
Supervisors also approved an $8,000 spending cap for the Custer County Assessor’s commercial property valuation maintenance contract with Central Plains Valuation.
The county assessor, Elise Taylor, told the board the contract will help ensure commercial property values comply with state requirements. The firm reviews sales and statistics, evaluates commercial property permits and helps ensure valuations remain within the state’s required range of 92% to 100% of value.
Taylor said the cap reflects the amount remaining in the data collection budget for the contract period through June.
The firm’s work will focus on commercial permits, including hog confinements and feedlots, rather than conducting a countrywide commercial property review as it did previously.
Taylor said the previous contract totaled more than $50,000 because it included commercial reviews across the county, which are required every six years. The upcoming review is expected to involve about 40 parcels, compared with more than 300 during the previous countrywide review.
Taylor explained that staffing shortages have limited the office’s ability to handle commercial appraisals internally.
“Once I get fully staffed, it will be a different story,” Taylor said, explaining that the office is currently handling data collection while it works to fill a position.
Taylor also noted that the commercial appraisal requires additional training and expertise, including the use of sales, cost and income approaches to determine property values. The maintenance contact also provides assistance during property valuation hearings. The board approved the contract with the $8,000 cap.
Other Board Business
The board approved Resolution 35-2026 establishing property tax levies for local political subdivisions for the 2026-27 fiscal year, with a correction to the tax year listed in the resolution.
Additionally, the Taylor presented options for replacing a copier that has been in use since approximately 2017 or 2018 and is becoming increasingly difficult to repair. The proposed replacement would cost about $7,000 to purchase for $143 per month under a 60 month lease. County Supervisors suggested bringing the proposal back during next year’s budget to be included within the Assessor’s expenses.
