Council moves data center moratorium forward, but it's not final yet

Indianapolis City-County Councilors voted 23-1 on August 10 to move forward with a proposed moratorium on new data center developments, a decision that was met with cheers from data center activists. The ordinance, sponsored by Council President Maggie Lewis and supported by Mayor Joe Hogsett, aims to ban any new data centers until December 31, 2027. However, this ban will not affect three data center projects that were approved earlier in the year.

The proposed moratorium represents a significant victory for local data center opposition groups who have actively campaigned against new facilities for over a year, advocating for a temporary halt rather than what they described as inadequate regulations. Despite the council's vote, the ordinance is not yet final and still requires approval from the Metropolitan Development Commission (MDC), with a potential vote scheduled for August 19.

Councilor Michael-Paul Hart, the lone dissenting vote, expressed concerns that the moratorium would merely postpone the issue, passing it on to the next City-County Council following the 2027 mayoral election. He suggested that developers would likely prepare plans in anticipation of the ban's expiration. The measure also faced opposition from local labor unions, who are eager for the construction jobs generated by such projects, and some city officials who highlight the substantial tax revenue potential, citing a proposed Martindale Brightwood center that could add $1.4 billion to the city's tax base.

The moratorium is intended to provide city development staff time to craft new zoning regulations for data centers, as the current city code lacks specific provisions for these facilities. If enacted, Marion County would join 19 other Indiana counties that have already implemented similar pauses on data center development.