Michigan City Proposes Data Center Moratorium That Would Exempt Google's Project
The Michigan City Common Council is considering a moratorium that would halt new data center development until July 31, 2028, while exempting Google's already-permitted and partially constructed campus on Royal Road. Residents criticized the exemption and the project's long-term tax abatements, and the council is expected to consider amendments and hold a final vote after additional readings.
The Michigan City Common Council began work on a proposed data center moratorium that would pause new development through July 31, 2028. Google's data center on Royal Road would be exempt because construction has begun and permits have been issued for multiple phases. The draft also removes language from an earlier proposal that would have barred future data center tax abatements.
The Google project received local tax incentives including a 40-year exemption on computing equipment and a 10-year abatement on building improvements, along with state tax breaks. Residents and environmental advocates protested the project and questioned the city's notice, tax deal and open-ended vested-rights exemption. Council members said interfering with permitted construction could expose the city to liability, while a revised proposal and possible zoning workshops are expected before a final vote, currently anticipated after the Nov. 4 second reading.