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Proposed ordinance seeks to set rules for data centers in Indianapolis

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INDIANAPOLIS — A proposed zoning ordinance to guide the development of data centers in Indianapolis could be adopted as early as June.

The Department of Metropolitan Development has drafted zoning rules specific to data centers. A Metropolitan Development spokesperson said Wednesday that the proposed ordinance is aimed at adding clarity to the development process.

City-County Councilor Ron Gibson, a Democrat, said, “Any new technology, it creates a lot of questions and concerns."

Gibson’s district includes the Martindale-Brightwood neighborhood, where the $500 million Metrobloks data center will be built. Shortly after Gibson voted to approve the project, someone shot into his home. A note reading “No data centers” was left under his welcome mat.

“I know there’s a lot of fear out there in terms of data centers,” Gibson said.

Gibson hopes the final rules can set clear, transparent guidelines for these projects.

“The fact of the matter is data centers are coming whether we want them to or not. So, how do we make sure they're more responsible, how do we make sure they invest in our community, and how do we make sure that investment is what we want?"

Over the last year, Indianapolis officials say, four separate requests were made to build data centers in Indianapolis. Without established zoning rules on data centers, which aren’t mentioned in the city’s comprehensive plan at all, the projects have needed to seek the approval of zoning variances and special use exemptions.

The Metropolitan Development Commission will consider the new zoning ordinance on data centers during its next meeting on May 20. If approved, the Indianapolis City-County Council could adopt it in June.

Gibson generally supports the idea, hoping it could calm some people’s fears.

Ben Inskeep is program director of the Indianapolis-based Citizens Action Coalition, which calls itself Indiana's oldest and largest grassroots consumer and environmental advocacy organization. Inskeep worries the proposed ordinance will simply expedite development.

“I think this ordinance fails to create basic protections for Hoosiers."

As written, the proposed ordinance would set minimum distances from "protected districts," including neighborhoods. Developers would need to provide water and electric utility plans.

Data centers would have a 65-decibel noise limit, the equivalent to a dishwasher or a conversation. Continuous exposure to noise greater than 70 decibels could create permanent hearing damage, according to the U.S. Environmental Protection Agency.

The Citizens Action Coalition wants to see the proposed ordinance impose greater restrictions, especially on environmental impacts. Inskeep suggested stronger noise limits, requirements to use clean energy, and increased setbacks.

“I think the ordinance right now is more designed to streamline the process for a new data center to come."

The proposed ordinance would require developers to secure assurances from utility providers that electric and water capacity is available. Gibson agreed with the coalition's call to require developers to cover the cost of utility infrastructure needs.

“Any development coming to Marion County, we need to require the developer to hold up 100% of the cost."

Inskeep has called on Marion County to place a moratorium on data centers, which the Citizens Action Coalition has already happened in a dozen other Indiana counties.

He said, "You want to make sure you have a zoning ordinance that sets a high bar for this new development rather than minimum standards that are really just a checkbox for the data center developer."

The city government is accepting online public comments, and hosting virtual public information sessions on Tuesday and April 30. The meetings were meant to be informational and offer a chance for feedback. Anyone hoping to attend the virtual meetings will need to RSVP online.

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