Hyperscale Data Center

Elkhart County officials are setting standards for data centers to regulate things like noise and setbacks, while St. Joseph County officials are developing a ban on any new data centers after approving projects by Amazon and Microsoft.

South Bend Common Council members Oliver Davis Jr. and Sherry Bolden-Simpson introduced a bill to bar city staff from entering into secretive agreements about projects after learning members of Mayor James Mueller's team signed agreements with Amazon in 2023 regarding their data center.

South Bend Mayor James Mueller has said new standards for data centers will come from his office but common council members Oliver Davis Jr. and Sherry Bolden-Simpson say city government's legislative branch should create such rules.

At a press conference Tuesday with common council and labor leaders, South Bend Mayor James Mueller announced his administration welcomes data centers but they'll have to follow new standards to make sure they're compatible with neighborhoods.

An agreement before St. Joseph County commissioners Tuesday would require the county, city of Mishawaka and Microsoft to find an alternative funding source for water infrastructure if the county council won't approve a tax incremental financing district.

Democratic St. Joseph County Council President Bryan Tanner worries a data center ban could trigger lawsuits from developers that will increase the county's legal costs. But Republican Council Member Amy Drake says he's being too cautious on the issue.

Democratic St. Joseph County Council President Bryan Tanner says he sees how unpopular data centers are with his constituents but he says council members' first priority should be to follow Indiana laws.

Elkhart Common Council President Arvis Dawson says he isn't worried that a data center moratorium will cause the city to lose out on economic development, since the city has things that data center developers want.

While the Amazon and Microsoft data centers are coming, the St. Joseph County Council now seems to have majority support for a ban on new hyperscale data centers.

Republicans on the St. Joseph County Council are calling for a two-year data center moratorium, while Democrats and the business community say that would jeopardize local control on major land use projects and close the door to future economic growth.