Daily Digest — April 2, 2026
Indianapolis Approves Metrobloks Data Center Despite Community Opposition
The Indianapolis Metropolitan Development Commission voted 6-2 on April 1 to approve rezoning for a $500 million data center by Los Angeles-based Metrobloks in the Martindale-Brightwood neighborhood, according to WTHR. The facility would be built on a nearly 14-acre former drive-in theater site at 2505 N. Sherman Dr., comprising two server buildings totaling 168,000 square feet with a closed-loop cooling system and 36 electrical generators.
As reported by IndyStar, nearly 100 residents and community groups — including the Black Church Coalition and the organization Protect Martindale Brightwood — testified against the project, citing concerns about environmental contamination, noise, water use, power demand, and incompatibility with the historically Black neighborhood's quality of life plan. State Rep. Greg Porter (D-District 96) and City-County Councilor Jesse Brown (D-District 13) also opposed the development.
Metrobloks CEO Ernest Popescu pledged $2.5 million upfront for community infrastructure and an additional $20 million over the next decade. The company's attorney argued the project would generate an estimated $11 million annually in property taxes before abatements, per IndyStar.
According to WFYI, the debate highlighted the absence of specific zoning designations for data centers in Indiana. Rep. Porter noted the Indiana General Assembly is still working to establish clearer guidelines for data center placement. District Councilor Ron Gibson indicated he would not challenge the petition when it advances to the full City-County Council, though community organizers told WTHR they are exploring legal options to continue opposing the project. No construction timeline has been set.
Metrobloks’ $500 million data center in Indianapolis gets green light
WISH-TV
Indianapolis city leaders vote to approve Martindale-Brightwood data center
WTHR
Controversial data center is approved for Martindale-Brightwood
WFYI
Martindale Brightwood data center overwhelmingly passes
IndyStar
Vote passes on Martindale-Brightwood data center
WTHR
Federal Lawsuit Challenges Hawkins County, Tennessee Data Center Ban
The Beacon Center of Tennessee has filed a federal lawsuit against Hawkins County on behalf of ExoticRidge Crypto Company, challenging a county-wide ban on data centers and cryptocurrency mining operations enacted by the Hawkins County Commission in September 2025, according to WBIR. The commission cited high energy consumption, continuous noise, minimal economic benefits, and incompatibility with the county's rural character when passing the prohibition.
The lawsuit alleges the ban is:
- Arbitrary and unconstitutional
- Overly broad, offering no variances, appeals, or exceptions
- Enacted with procedural deficiencies including a lack of proper notice under Tennessee law
As reported by WJHL, the Beacon Center asserts that Hawkins County does not have an official zoning code and thus lacks authority to regulate private property in this manner. The lawsuit details that ExoticRidge had already invested significant resources in preparing a Bitcoin mining facility in Vols Gap and claims losses of $120,000 per month since the ban took effect. The company is seeking permission to operate and compensatory damages.
Hawkins County Mayor Mark DeWitte indicated it is premature to comment on next steps, as the county has not yet been officially served, per WBIR.
Butler County, Ohio Residents Seek Moratorium as Trenton Approves Data Center
Residents in Trenton, Ohio are urging Butler County commissioners to enact a moratorium on data center development after the Trenton Planning Commission approved zoning for a nearly 1-million-square-foot data center on 145 acres, according to Journal-News. An unnamed developer described as the "world's largest industrial real estate developer" purchased the land from the city for $7.75 million.
As reported by LOCAL 12, the planning commission approved the zoning in under ten minutes, frustrating residents who were not permitted to ask questions afterward. Community members have raised concerns about health, environmental impacts, water usage, power demands, noise, and traffic. The city's planning and zoning administrator stated an extensive review occurred prior to the meeting and that the city would follow guidance from the Ohio EPA and Butler County Health District rather than requiring a separate comprehensive impact study. Initial groundwork is already underway.
Butler County Commissioner Don Dixon indicated the county has limited power to intervene in local zoning matters. Under Ohio law, zoning authority generally rests with municipalities and townships, not counties. Meanwhile, the Ohio House unanimously passed House Bill 646, which would create a 13-member commission to study economic and environmental impacts of data centers. Separately, a citizen effort is seeking over 400,000 signatures by July 1 to place a constitutional amendment on the November ballot that would ban data centers statewide, per Journal-News.
Law360 Reports Growing Data Center Zoning Litigation Nationwide
Litigation challenging zoning approvals for data center projects is increasing across the United States, according to Law360. The outlet reports that lawsuits frequently allege violations of "sunshine laws" mandating government transparency. In one notable case in the country's largest data center market, a rezoning decision was voided as a result of such a legal challenge.
Dominion Energy Customers Oppose Proposed 11% Rate Hike
Dominion Energy customers voiced opposition to a proposed 11% rate increase during the first public hearing on the matter, as reported by MSN. The rate hike, if approved, could affect operational costs for data centers operating within Dominion Energy's Virginia service territory — the largest data center market in the country.
Studies Flag Heat Island Effect, Water Supply Concerns From Northern Virginia Data Centers
Two recent studies highlight potential environmental impacts from data center growth in Northern Virginia, according to Northern Virginia Magazine. Research involving the University of Cambridge examined 6,000 data centers globally and found surface temperatures increased by an average of 3.6°F after a data center began operations, with extreme spikes reaching 16.4°F and affecting areas up to 6.2 miles away.
Separately, the Interstate Commission on the Potomac River Basin noted that while data centers currently account for 1% of total Metropolitan Washington Area water withdrawals, they represent 9% of annual consumptive water use — rising to 12% during summer months when river flows are lowest. A projected 100 million square feet of new data center construction could lead to regional water supply reliability challenges.
Mason County, Kentucky Planning Commission Advances Data Center Rezoning Despite Lawsuit
The Mason County Joint Planning Commission voted 4-1-1 to recommend approval of a 2,080-acre data center rezoning plan, forwarding it to the Mason County Fiscal Court for final consideration despite a pending lawsuit filed by local residents, according to WCPO. Commissioner Kirby Rosser, the lone dissenting vote, had raised concerns about proceeding while litigation was active, prompting an executive session before the vote.
As reported by WCPO, attorney Hank Graddy filed the lawsuit on behalf of Maysville residents, arguing the project does not comply with the county's comprehensive plan. The identity of the developers remains undisclosed, a point of concern raised during the meeting. Opposition leader Max Moran expressed hope that a court finding of an illegal process could halt the development. All parties named in the lawsuit declined to comment on the pending litigation.
