Urbana council reverses zoning change, stalling data center plans
Urbana City Council unanimously voted to reverse a previous zoning amendment that would have allowed data centers in the M-1 Light Manufacturing District, effectively stalling Thor Equities' planned $1 billion Urbana Technology Hub. The decision follows significant resident opposition citing concerns over noise, water pollution, and proximity to sensitive areas. Thor Equities, however, expressed commitment to finding a path forward for the project.
Urbana City Council voted unanimously on June 16 to reverse an April 2025 zoning amendment that had permitted data centers in the city's M-1 Light Manufacturing District. This decision effectively halts the immediate plans for Thor Equities' proposed $1 billion Urbana Technology Hub data center campus, which was slated to be a 460,000-square-foot private investment.
The council's reversal comes amidst considerable resident opposition, with community members raising concerns about potential noise, water pollution, and the facility's proximity to a school, a long-term care facility, and the Cedar Bog Nature Preserve. Residents had actively campaigned against the project, previously prompting the council to enact a 12-month moratorium on data center development in March.
While residents celebrated the vote as a victory, Thor Equities released a statement affirming its commitment to exploring future options for the Urbana Technology Hub, emphasizing its potential for substantial tax revenue and long-term investment. Council President Dwight Paul and Council member Patrick Thackery acknowledged the vote's immediate impact on new data centers in M-1 zones but expressed uncertainty regarding its legal implications for Thor Equities' existing land purchases and the potential for future conditional use zoning for data centers.