Thor Equities files federal lawsuit against city of Urbana after data center zoning reversal
Thor Equities has filed a federal lawsuit against the City of Urbana, its city council, and the Building & Zoning Appeals Board after the city reversed a zoning amendment that would have allowed data centers. This legal action follows resident opposition and the enactment of a 12-month moratorium on data center development in Urbana. Thor Equities, which had invested millions in a planned $1 billion 'Urbana Technology Hub,' alleges the city's actions violate city charter, zoning code, state law, and constitutional protections.
Thor Equities, a global real estate developer, has filed a federal lawsuit against the City of Urbana, its city council, and the Building & Zoning Appeals Board. The lawsuit seeks to allow the company to proceed with its planned 460,000-square-foot, $1 billion "Urbana Technology Hub" data center campus, despite recent city actions.
The legal challenge comes after the Urbana City Council unanimously voted to reverse an April 2025 amendment that had initially permitted data centers in the city's M-1 Light Manufacturing District. Thor Equities claims it relied on the council's initial actions, investing over $19.6 million and acquiring approximately 230 acres of land for the project. The firm alleges that the city denied its project application on inconsistent grounds and that its appeal was procedurally flawed, violating the City Charter, Zoning Code, Ohio law, and constitutional protections.
Local residents have actively opposed the data center, citing concerns about noise, water pollution, and the facility's proximity to a school, a long-term care facility, and the Cedar Bog Nature Preserve. This public outcry led the city council to enact a 12-month moratorium on data center development in March, effectively delaying Thor Equities' project. Following further resident and committee recommendations, the council then reverted the zoning language, making data center development more difficult. Thor Equities, through Global COO Melissa Gliatta, has pushed back against what it calls "misinformation" regarding data centers' environmental impacts, highlighting their use of advanced, efficient cooling systems.
Council President Dwight Paul declined to comment on the specifics of the lawsuit, stating he had not yet reviewed it. The situation reflects a broader state government push for data centers in Ohio, which already hosts over 200 facilities.