Debate Intensifies Over Proposed Data Center Expansion in Hallam
In a small Nebraska village, a proposal has stirred significant debate among locals and business representatives. Monolith, a company specializing in carbon black manufacturing, aims to broaden its operations by establishing a new data center in collaboration with Crusoe, a Denver-based AI firm.
The proposed expansion includes a 35-megawatt data center and additional carbon black units. Steve Buster, managing director of Crusoe, emphasized the modular nature of their projects. “What you hear about in the news is on this side of the spectrum: huge hyperscale, 1000, 2000, 3000 megawatts on 1000s of acres,” he explained. “They’re often associated with really inefficient cooling, evaporative cooling. They’re big projects. On the opposite side of the spectrum is Spark, and that’s us. They’re modular.”
Despite Buster’s reassurances, the proposal met with skepticism. Residents were given a platform to voice their opinions after a 20-minute presentation from the companies. During the public hearing, only one individual, a Monolith employee, expressed support.
Kristi Yelm raised questions about Crusoe’s international ties. In 2025, Crusoe acquired Atero, an Israeli company, which is now integrated into the “Crusoe Cloud Platform,” as noted in a statement to Nebraska Public Media News.
Concerns about regulatory gaps also surfaced. Tom Hanna, a member of “Hallam Says No,” pointed out the absence of specific data center regulations in Hallam’s comprehensive plan. “You guys just did a comprehensive plan last year, (and) data centers were not a contemplated use at that point. Even last year, there’s not really rules in place to regulate data centers specifically within the community, and there’s been really no community outreach other than driven by Monolith,” Hanna remarked.
Sandy Hermesch echoed these concerns, urging the village to ensure resident protection prior to any zoning changes. “When you put a 24-hour industrial facility near people’s homes, the village has a responsibility to be absolutely certain the people who already live here are protected,” Hermesch stated.
Another resident, Dusty Schelbitzki, expressed fears about the village’s changing landscape. “They’re going to continue to come in, encroach, keep pushing more and more here, because once you open that door, I don’t think it’s going to stop,” Schelbitzki warned. He further mentioned his willingness to relocate if the project proceeds.
Ultimately, the planning commission decided to postpone any decision on the data center proposal until further discussions. A Monolith attorney suggested advancing with the site plan, but the board opted to await more comprehensive information before proceeding.
