Indianapolis Halts New Data Centers Through 2027

The Indianapolis Metropolitan Development Commission unanimously passed a first-of-its-kind temporary moratorium on new data center development, effective immediately and lasting through 2027. This decision follows 18 months of campaigning by Indianapolis residents and advocacy groups like the Citizens Action Coalition, who celebrated the vote as a significant victory.

The moratorium received strong backing from Mayor Joe Hogsett, Council President Maggie Lewis, and the majority of the City-County Council. While Councilor Dan Boots described the ban as a necessary tool to allow the city to study how to best regulate data centers, Councilor Michael-Paul Hart expressed concerns that it might simply push developer proposals to 2028, after the next city-wide election.

Indianapolis joins over 20 other Indiana counties that have implemented temporary bans on data center construction. However, the moratorium will not affect three data center projects previously approved this year in Martindale Brightwood, Decatur Township, and on the east side, as existing zoning approvals cannot be retroactively overturned. The Department of Metropolitan Development plans to hire a consultant and form an advisory committee to develop recommendations for future data center regulations.

Public attention to data centers intensified after a Google proposal for a hyperscale facility on the southeast side was withdrawn due to local opposition. Advocates have since raised concerns about data centers' high water usage, electricity demands, and noise, emphasizing the need for new regulations.