Indianapolis adopts data center moratorium, pausing new developments through 2027

INDIANAPOLIS (WISH) – Indianapolis has officially put a pause on new data center developments through 2027. 

The Metropolitan Development Commission voted 6-0 Wednesday to approve the pause as part of a zoning ordinance that establishes minimum standards for these projects.

The public applauded the vote. Citizens Action Coalition, a group calling for a statewide moratorium, encouraged attendees to wear red and hold signs opposing the centers.

“I feel a lot right now. I feel a sense of relief,” Bryce Gustafson, program director for the Citizens Action Coalition said. “But we also realize this is essentially half time. There’s a lot of work to be done around getting good guardrails around these data center projects.”

The city expects to update zoning regulations before the moratorium expires in 2028. The pause gives officials time to consider stronger restrictions but will not stop projects that officials have already approved.

City-County Councilman Dan Boots, a Democrat, said the council allocated funds for an outside study on potential regulations.

“We’re looking at quite extensive regulations,” Boots said. “And we’re going to do a nationwide survey of what’s out there already, and talk to experts.”

The lone council member who opposed the moratorium, Michael-Paul Hart, a Republican, spoke against the measure during the meeting. Hart said he wanted the city to strengthen regulations while still considering new projects.

“Just by saying ‘no’ to everything is not a responsible thing to do,” Hart said. “We have a set of development standards in place; if we want to go more restrictive we always can.”

Hart said the moratorium could cause Indianapolis to miss out on major investments.

Elder Mmoja Ajabu of Indianapolis also spoke in opposition, though he was not officially allowed to speak during public comment. Ajabu interrupted the meeting when commissioners denied him the podium, standing and shouting for a “cease and desist” on three data centers already under development.

Ajabu wanted a moratorium that would halt the DC Blox, Sabey, and Metrobloks projects.

“(Data centers) make plenty of money. But at the expense of people’s lives,” Ajabu said afterward.

Attorney Chris Steinmetz told the commission that state law prevents the moratorium from affecting ongoing developments.

When asked if stricter regulations could address the public’s concerns, Boots said, “Time will tell.”

“Our intent is to come to a rational, reasonable compromise that protects the people but also protects the economic interests of Indianapolis going forward,” Boots said.

The commission will consider major tax abatements for the Sabey and Metrobloks data centers Sept. 16.

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