Urbana City Council reverses data center zoning change
The Urbana City Council unanimously voted to reverse a zoning change that had previously allowed data centers in the city's M-1 Light Manufacturing District. This decision follows months of significant public opposition from residents to a proposed data center project. The vote essentially restricts data center development by restoring earlier zoning regulations, despite a developer's recent land purchases.
The Urbana City Council has unanimously voted to reverse a zoning change, thereby restoring the city's zoning code to its pre-2025 status, which did not permit data centers in the M-1 Light Manufacturing District. This decision, formalized through Ordinance 4635-26, came after months of intense public opposition and numerous standing-room-only meetings where residents voiced concerns against a proposed data center.
The vote followed a 7-0 recommendation from the Urbana Planning Commission in May and a public hearing held on June 9. Residents celebrated the council's decision, which effectively blocks the path for data center development in the previously designated zone. Despite the ongoing council deliberations, Thor Equities and its partners continued purchasing land for a potential data center campus south of State Route 55 and west of U.S. Route 68, including a recent acquisition of nearly 100 acres for $3.4 million just weeks before the final vote. The long-term impact on Thor Equities' proposed development remains uncertain.