2 Indy data centers are being developed on brownfields. Are there risks?
Indianapolis has approved two data center projects on brownfields, leading to resident opposition over environmental and health risks. In response, the city has enacted a moratorium on data center projects to establish specific zoning standards.
Indianapolis has approved two data center projects on brownfields on the city's east side, with California-based Metrobloks developing a site in Martindale Brightwood and Georgia developer DC BLOX planning a $2 billion campus at the former Ford-Visteon manufacturing site near Irvington. These approvals have drawn opposition from residents concerned about the environmental and health risks of building on contaminated properties.
Brownfields are defined as lands difficult to redevelop due to potential hazardous substances. State agencies like the Indiana Finance Authority, which manages the Indiana Brownfields Program, and the Indiana Department of Environmental Management work to ensure that such redevelopments are safe, often imposing land use restrictions. For instance, the DC BLOX site is restricted from residential or agricultural use, and groundwater use is prohibited.
Experts note that brownfield cleanups aim to mitigate health and environmental risks for the intended new use, rather than restore sites to pristine conditions. While polluters are typically responsible for cleanup, new buyers can acquire contaminated properties without liability if they prevent further contamination. Ford, for example, successfully remediated its former plant site before DC BLOX's involvement.
Currently, Indianapolis lacks specific zoning designations for data centers. The city recently passed a moratorium on new data center projects to allow time for officials to develop appropriate zoning standards. Brownfields are often attractive to developers due to their existing industrial zoning, lower costs, and proximity to crucial power infrastructure.