Cleveland to Prohibit Data Centers in New East Side Development Zone
Cleveland is proposing a "Housing Innovation District" on its East Side, aiming to revitalize historically disinvested neighborhoods through economic development tools, including modernized zoning and a tax increment financing district. A key component of the plan is an amendment that would prohibit building data centers within this district. The proposal has advanced through a city council committee and is anticipated to receive full council approval soon.
The City of Cleveland is advancing a comprehensive economic development initiative for its historically under-invested East Side neighborhoods of Hough, Central, and St. Clair-Superior. Designated as a "Housing Innovation District," the plan seeks to stimulate new housing and businesses through a suite of tools, including waived permit fees for new construction, modernized zoning codes, and the creation of a tax increment financing (TIF) district. Tom McNair, the city's Chief of Integrated Development, emphasized the goal of incentivizing new housing while building wealth for existing residents, acknowledging that these "amazing neighborhoods" have long lacked adequate investment.
The proposal includes a $750,000 city investment, complemented by funds from the Jack, Joseph and Morton Mandel and Cleveland Foundations, to construct 20 new homes and support repairs for 10 existing ones. The TIF district, spanning 1,500 acres, is projected to generate $90 million to $245 million over 30 years, with all revenue reinvested into public infrastructure such as roads, streetscapes, and parks. Additionally, administrative changes aim to attract developers by streamlining the permitting process and implementing form-based zoning codes to encourage mixed-use development and diverse housing typologies.
Crucially for data center development, the administration is adding an amendment to the plan that would explicitly prohibit the construction of data centers within the Housing Innovation District. While council members at the Development, Planning and Sustainability Committee meeting largely supported the overall proposal, with Councilmember Stephanie Howse-Jones highlighting the need for real solutions in devastated communities, some residents expressed concerns about potential displacement due to rising property values. Councilmember Charles Slife also voiced skepticism regarding the partnership with philanthropic organizations. The proposal has passed through the committee and is expected to receive final approval from the full city council by June 1, with groundbreaking anticipated for some projects this summer.