Data Center Developer Sues Urbana, Ohio, Over Zoning Changes and Moratorium
Thor Equities has filed a federal lawsuit against the city of Urbana, Ohio, its city council, and zoning appeals board. The lawsuit alleges that Urbana officials violated state and local laws by changing zoning regulations to prevent data center developments and enacting a 12-month moratorium. The developer claims these actions have caused significant financial losses and hindered the proposed Urbana Technology Hub project.
New York-based real estate firm Thor Equities has filed a federal lawsuit against the city of Urbana, Ohio, its city council, and zoning appeals board, alleging violations of state and local laws. The developer, proposing the 460,000-square-foot Urbana Technology Hub data center, claims the city's recent regulatory changes and a moratorium have unfairly halted construction.
The lawsuit follows a series of events: Urbana initially amended zoning in April 2025 to permit data centers in M-1 manufacturing districts and rezoned Thor's property. A Community Reinvestment Area agreement, including tax abatements, was approved in November 2025. However, after Thor submitted its site plan in February 2026, the application was rejected. In March 2026, the city council enacted a 12-month moratorium on data center developments, and in June 2026, it repealed the ordinance that had allowed data centers in the M-1 district, effectively banning them.
Thor Equities asserts that the city's actions, coming after it had "paved the way" for the development, have resulted in over $19 million in lost investment, project delays, impaired business relationships, and a loss of potential jobs and $3 million annually in tax revenue for Urbana. The city has declined to comment on the ongoing lawsuit. Thor Equities stated it rejects "misinformation and outright nonsense being spread online about data centers" and looks forward to a fair resolution to continue as a partner for Urbana.