An effort to pause data center development in Michigan City has itself been paused. The city council on Tuesday tabled a proposed moratorium ordinance, by a vote of eight-to-one.
As written, the ordinance would pause the issuance of permits and tax abatements for data center-related projects, until the city’s plan commission has a chance to add some regulations to the city’s zoning ordinance. The moratorium would not apply to projects that are already underway, like Google’s data center at the former Federal Mogul property.
But the language of the moratorium itself remained up in the air. Council Attorney Nick Snow said the current plan is to have council members draft a resolution directing the city’s planning department on what to look for.
"We believe, at this time, having done further research and kind of heard the body of what’s out there, that the planning commission should play a direct role in the formation of any legislation that would conceivably ultimately result in a change to the planning and zoning code," Snow explained.
The slowdown in moratorium progress drew frustration from residents and environmental groups. "This really concerns me because you’re opening up the floodgates to harm," Just Transition Northwest Indiana Executive Director Ashley Williams told council members. "We are extremely vulnerable right now."
Some worried that tabling the ordinance will give the planning department a chance to boost data center development, rather than pause it. They pointed to a proposal to add a data center district to the city’s zoning ordinance.
Nearby St. Joseph County is considering a ban on new data centers, amid worries about potential legal challenges.
