Indianapolis proposes data center zoning rules, but critics say protections fall short

The Indianapolis Department of Metropolitan Development has released draft zoning rules aimed at regulating data center construction within Marion County. The proposed ordinance introduces a new zoning category for data centers, setting a noise cap of 65 decibels at property lines, requiring a 200-foot buffer from residential areas, and limiting backup generator use to emergencies. Additionally, developers would need to submit "will-serve" letters from utility providers like AES Indiana and Citizens Energy Group, confirming available electrical and water capacity, and file an operations plan detailing cooling, water discharge, and noise mitigation. These regulations come amidst increasing local opposition to data center projects, with residents expressing concerns over energy consumption, water demand, and neighborhood impact. Pat Andrews, chair of the Decatur Township Civic League’s Land Use Committee, criticized the city's previous lack of specific zoning for data centers, citing the recent approval of a Sabey Data Centers development in Decatur Township. Ben Inskeep, program director at Citizens Action Coalition, also voiced concerns that the draft rules offer inadequate protections for Indianapolis residents, particularly regarding noise levels, proximity to sensitive areas, and reliance on diesel generators. Despite calls from critics for a moratorium on new data centers, Indianapolis City-County Council members, including former Council President Vop Osili, have not supported such measures. Instead, officials have advocated for increased oversight and community engagement. Councilor Jesse Brown introduced a proposal urging developers to engage transparently with residents and pursue Community Benefit Agreements, stating the Council's preference to avoid a total moratorium on data centers.