Shelby County, Indiana, to Hold Public Hearing on Proposed Data Center Regulations

Shelby County, Indiana, to Hold Public Hearing on Proposed Data Center Regulations

News ClipThe Addison Times·Shelby County, IN·6/22/2026

Shelby County, Indiana, is holding a public hearing on a proposed ordinance to establish regulations for future data centers in its unincorporated areas. This ordinance, developed after a six-month moratorium, would require rezoning to a new Data Center Overlay District and address critical issues like utility capacity, water usage, noise, and environmental impacts. The proposal also includes restrictions on locations near homes, schools, farmland, and protected wildlife habitats.

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Gov: Shelby County Plan Commission, Shelby County Commissioners, Desiree Calderella

The Shelby County Plan Commission is set to hold a public hearing on a proposed ordinance that would establish new regulations for data centers in unincorporated areas of Shelby County, Indiana. The hearing will take place on Tuesday at 7 p.m. in Breck Auditorium at Shelbyville High School to accommodate anticipated attendance. This follows a six-month moratorium on new data center applications, which the County Commissioners approved in February to allow for the development of these new regulations.

The draft ordinance, however, will not apply to an existing data center project currently proposed within Shelbyville city limits. Instead, it targets future data center developments seeking to locate outside the city's jurisdiction. Key provisions include requiring developers to obtain rezoning approval to a new Data Center Overlay District and secure county approval for detailed development plans. These plans must address concerns such as utility capacity, water usage, traffic, noise, lighting, landscaping, and eventual decommissioning, with developers responsible for review costs, including those for outside consultants.

Furthermore, the proposal outlines significant restrictions on data center siting. It would prohibit projects on prime farmland, wetlands, areas without public utility access, and locations near protected wildlife habitats. Maximum site size would be limited to 200 acres. Stringent setbacks of at least 1,300 feet from homes, schools, and other sensitive areas, and 500 feet from property lines, would also be enforced. Developers would need to demonstrate that projects would not negatively impact existing utility customers, finance all necessary infrastructure upgrades, and utilize closed-loop liquid cooling systems.

While Tuesday's meeting is a public hearing, final adoption of the ordinance is not expected. The Plan Commission will discuss potential revisions, with a tentative final vote scheduled for July 28. If approved, the ordinance would then move to the Shelby County Commissioners for final consideration, tentatively on August 3. Residents are encouraged to provide public comments, limited to two minutes per person, or submit written comments to Planning Director Desiree Calderella.