Communities large and small across Indiana are reckoning with how to regulate data centers. Indy is no different.
Following months of pushback from residents, the City-County Council unanimously approved a special resolution May 4 calling on the city’s Metropolitan Development Commission to temporarily stop approving new data centers. The commission handles the city’s planning and zoning issues.
The move, though, was symbolic. It asked the commission to pause any approvals until the city can adopt its proposed zoning regulations around data centers. The commission, though, doesn’t have to abide by the council’s request.
The discussion around new zoning rules is expected to take place in the coming months.
More on data centers
At its most recent meeting May 6, commissioners did not discuss the possibility of a moratorium. They are expected to discuss the city’s proposed zoning regulations as early as June 3.
Republican Councilor Michael-Paul Hart voted in favor of the special resolution but called it “political theater” designed to get people “riled up to think that we’re actually doing a moratorium, and we’re not.”
Council Democrats, who are in the majority, also voted in favor of the resolution while noting, in part, that it “does not carry the force of law.”
So how does Indy really plan to regulate data centers?
The proposed policy
In April, the Department of Metropolitan Development unveiled a working draft of data center regulations.
The regulations would place restrictions on sound levels (may not exceed 65 decibels), mechanical equipment and land use for data centers.
Their developers would be required to submit plans for water management, electrical capacity and noise mitigation.
All proposed data centers would also need written verification from utility providers that adequate electrical capacity is available to meet the expected energy output of a facility.
Moratorium unlikely
Critics and skeptics of data centers say the regulations fail to address the health and environmental concerns surrounding data centers.
Groups such as the Citizens Action Coalition and the Hoosier Environmental Council have called on Indiana local governments to enact a moratorium on new data center development.
About a dozen Indiana counties have issued moratoriums. In northern Indiana, Marshall County went a step further and adopted a permanent ban on data centers.
In Boone County northwest of Indianapolis, where Facebook parent company Meta just built a massive $10 billion data center, county commissioners are considering a moratorium on any new data centers.
Marion County appears unlikely to go that route. While some councilors, like Democrats Jesse Brown and Crista Wells, have called for a moratorium, the idea has failed to garner public support from a majority of members.
Two new data centers have already been approved in Indianapolis this year:
- Metrobloks, a California-based developer, will build a $500 million data center complex on a nearly 14-acre site at 2505 N. Sherman Ave., a vacant lot that was a former drive-in theater.
- Seattle-based Sabey Data Centers will construct a data center in Decatur Township that will span roughly 18 football fields.
What’s next?
The public comment period on Indy’s draft regulations ended May 18.
The Metropolitan Development Commission is expected to discuss the proposal at its June 3 meeting.
If approved, the ordinance would be assigned to a council committee. If it makes it through that stage, it would then go to the full council for final approval.
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Peter Blanchard covers local government. Reach him at 317-605-4836 or peter.blanchard@mirrorindy.org. Follow him on X @peterlblanchard.
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