Shelby County Plan Commission refines proposed data center overlay ordinance

The Shelby County Plan Commission is in the process of refining a proposed data center overlay ordinance for unincorporated areas of the county. During a special meeting, discussions centered on establishing a Data Center Overlay District with specific requirements for data center location, setbacks, screening, lighting, water use, and energy systems. Planning Director Desiree Calderella noted updates to the draft, including standards for construction and provisions for battery energy storage systems.

A significant portion of the meeting focused on concerns from residents regarding potential decreases in property values for neighboring properties. Residents urged the commission to incorporate language from other Indiana counties that would ensure appraisals or compensation mechanisms. Commission member Jenna Martin questioned the feasibility of solely attributing property value decline to a single development. Commission President Kevin Carson cited a Posey County ordinance with a quarter-mile property value guarantee. Ultimately, the commission considered if property value protections should be addressed in a broader ordinance covering all industrial developments.

Noise standards were also a key discussion point, with residents advocating for lower C-weighted decibel limits due to concerns about low-frequency sound. Martin raised questions about applying noise standards during the construction phase, suggesting they might be more appropriate for facility operations. Calderella proposed that construction noise might be better handled by a county-wide ordinance. The proposed ordinance further restricts data centers to High Intensity Industrial or High Impact zoning districts and mandates development plan approval, while prohibiting facilities on prime farmland, in wetlands, or within 50 feet of wetlands. The Plan Commission's final recommendation will be forwarded to the Shelby County Commissioners for a decision.