Urbana council reverses zoning change, stalling $1B data center plans
The Urbana City Council unanimously voted to reverse a previous zoning amendment that allowed data centers in an M-1 district, effectively stalling Thor Equities' $1 billion Urbana Technology Hub project. This decision follows significant resident opposition, environmental concerns, and a previously enacted 12-month moratorium on data center development in Urbana. Thor Equities remains committed to exploring a path forward, while the city council awaits legal advice on the impact of the reversal on existing plans.
The Urbana City Council unanimously voted 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 planned $1 billion Urbana Technology Hub data center campus by Thor Equities, a global real estate developer, which intended to build a 460,000-square-foot facility south of State Route 55 and west of U.S. Route 68.
The reversal comes after significant public outcry, with residents expressing concerns over potential noise, water pollution, and the facility's proximity to a school, a long-term care facility, and the Cedar Bog Nature Preserve. This public opposition previously led the council to enact a 12-month moratorium on data center development in March.
Despite the setback, a spokesperson for Thor Equities affirmed the firm's commitment to finding a path forward for the project, citing its potential for substantial tax revenue and long-term investment in Urbana. However, Council President Dwight Paul and Council member Patrick Thackery acknowledged uncertainty regarding the legal implications for Thor Equities' purchased land and suggested that a "conditional use" approach might be revisited after the moratorium committee concludes its research on environmental and economic impacts.