Indianapolis officials have approved a sweeping pause on new data center projects, clearing the way for a multi-year review of how the fast-growing industry will be regulated in Marion County.
The Metropolitan Development Commission on Wednesday voted 6–0 to approve Ordinance Amendment 2026 AO 001, adopting City-County Council language that places a moratorium on the permitting or allowance of new data centers within the commission’s jurisdiction through December 31, 2027. The vote was unanimous among the commissioners present.
The move follows an earlier vote by the council on August 10, 2026, where councilors overwhelmingly backed the moratorium in order to “pump the brakes” on data center development while city staff and outside experts study environmental, technical, and land use impacts.
Presiding over the public hearing, Commission President John Dillon framed the proposal as a simple up-or-down decision.
“Our vote today, we cannot amend what’s been sent to us,” Dillon said. “You either have to say yes, I’m voting for the moratorium, or no, I’m voting against the ordinance that was sent to us.”
How It Got Here
The moratorium was not the city’s original plan.
As the Indianapolis Business Journal has reported, the proposal began as an effort by the Department of Metropolitan Development and the MDC to write regulations for data centers rather than halt them. That changed on July 10, when City-County Council President Maggie Lewis announced the council would pursue a moratorium instead. Mayor Joe Hogsett said three days later that he supported the pause and welcomed the additional time.
The IBJ also reports that a fiscal package introduced with Hogsett’s budget proposal includes $150,000 to fund the data center research the moratorium contemplates.
What the Moratorium Does
Bryce Patz, Administrator of Current Planning with the Department of Metropolitan Development, presented the ordinance on behalf of staff. He explained that the amendment both refines the definition of “data center” in the zoning code and creates a temporary halt on new data center approvals so the city can write more detailed rules.
Under the adopted language, Revised Code Section 742-009, Subpart L is reserved for future data center regulations. During the moratorium, staff are directed to work with experts and stakeholders to craft standards dealing with:
- Campus size and maximum building height
- Maximum building footprints
- Sound levels, including low-frequency noise and dBC
- Brownfields and subsurface environmental testing
- Generator testing plans
- Electronic waste disposal and other environmental issues
Patz told commissioners the administration supports the pause.
He said the moratorium is meant to “allow for community experts and community members to engage in reasonable and responsible regulation for data centers” and confirmed that DMD staff are already preparing to convene those experts.
The amendment also clarifies what is not considered a data center. Wireless communications facilities, substations, utility distribution nodes, public safety facilities, and post offices are specifically excluded from the new definition, ensuring those uses remain governed under existing special use provisions.
“Grandfathered” Projects
A key point of tension in the hearing centered on whether the moratorium would unintentionally block three data centers that have already been approved by the commission but have not yet begun construction. Those three projects are the DC Blox data center on the east side, the Metrobloks project in Martindale-Brightwood, and Sabey Corp.’s project in southwestern Marion County, according to the IBJ.
Commissioner Brian Murphy pressed staff and legal counsel on whether the ordinance’s language—placing a moratorium on the “permitting or allowance” of any and all data centers—could be interpreted to cover those previously approved projects, particularly when they move to pull improvement location permits.
Patz and DMD staff said their understanding is that the three existing projects are effectively grandfathered and cannot be subjected to new rules retroactively.
MDC Attorney Chris Steinmetz pointed to the state’s vested rights statute, Indiana Code 36-7-4-1109, which locks in the regulations in place at the time a land use application is filed, for three years.
“Those are the rules that will apply for three years following the filing of that application,” Steinmetz said. “To the extent that this language may not be totally clear on that, it would be preempted by the state statute.”
Dillon underscored that point for the record, stating his view that the three previously approved projects “are not involved in this moratorium, A to Z, anywhere involved.”
The exemption matters for more than permits. The same administration backing the pause is also backing tax breaks for the three projects that cleared zoning ahead of it. The IBJ reported that the MDC took up nearly $250 million in incentives tied to the Sabey project the day before the moratorium vote.
Split on the Council, Unified on the Commission
The commission’s unanimous vote stands in contrast to a rare split on the City-County Council.
Councilor Dan Boots, who represents District 3 and supported the moratorium, appeared in person to back the measure. He described it as an “important tool” to pause development while the city hires experts and studies the issue. Boots said the council even appropriated funds for that technical work.
Boots reminded the commission the council vote was 23–1 in favor.
The lone “no” vote, Republican Councilor Michael-Paul Hart, also addressed the commission and reiterated his opposition. Hart argued the city already has a set of standards for data centers, developed with significant effort, and said those guidelines could be improved through commitments and case-by-case negotiations rather than a full stop on new approvals.
Hart warned that when the moratorium expires at the end of 2027, a mostly new council could be facing sophisticated developers without having gained more experience during the pause.
Not Alone
Indianapolis joins a growing list of communities putting the brakes on data center development. Per the IBJ, the mayor of Louisville signed a six-month moratorium last week, and Jeffersonville and Valparaiso have passed similar measures.
The pause has drawn objections from the building trades, the technology industry, and economic development groups. Indy Chamber President Matt Mindrum argued in a column last month that the moratorium signals Indianapolis is becoming less open to business and risks driving away billions of dollars in investment.
Despite those concerns, commissioners followed the council’s majority, the mayor’s public call for a pause, and DMD’s recommendation. With six yes votes recorded, the moratorium was adopted, and the commission adjourned after briefly thanking members of the public and council for their participation.
