Thor Equities files federal lawsuit against Urbana over data center project
Thor Equities has filed a federal lawsuit against the City of Urbana, Ohio, its City Council, and the Building and Zoning Appeals Board. This action follows the city's reversal of zoning changes that would have allowed a data center campus and the enactment of a 12-month moratorium on data center development. Thor Equities alleges the city improperly denied its application and violated various laws and constitutional protections after significant public opposition.
Thor Equities has initiated a federal lawsuit against the City of Urbana, Ohio, its City Council, and the Building and Zoning Appeals Board in the United States District Court for the Southern District of Ohio. This legal action is the latest development in a dispute over a proposed data center campus on approximately 230 acres south of State Route 55 and west of U.S. Route 68.
The lawsuit was filed after the Urbana City Council unanimously voted to reverse zoning changes that had previously permitted data centers in the development area, and after the city enacted a 12-month moratorium on new data center development earlier this year. Thor Equities claims it collaborated with city officials for over a year, during which the property was annexed and rezoned for manufacturing, with an amendment to the zoning code in April 2025 specifically allowing data centers. The company states it invested over $19.6 million and submitted a site plan application in February 2026, relying on these prior city actions.
Thor Equities alleges that the city improperly denied its application and then enacted the moratorium due to public opposition, arguing that Urbana's actions violated city charter provisions, zoning code, Ohio law, and constitutional protections. The company highlights the project's potential economic benefits, including an estimated $3 million annually for the city's budget and $2.8 million in new tax revenue for local schools, and disputes environmental concerns regarding water usage, noise, and health impacts.
The proposed development has faced organized opposition from residents concerned about its effects on agricultural land, local infrastructure, and the Cedar Bog Nature Preserve. While Thor Equities remains interested in proceeding with the project, the City of Urbana has stated it will not comment until its officials have reviewed the federal court filing. This federal case follows an administrative appeal previously filed by Thor Equities in Champaign County Common Pleas Court.