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Chaos erupts at town meeting over planned AI data center in Indianapolis

"A smaller version of the wrong use in the wrong proceeding is still the wrong thing."

An aerial view of a modern industrial facility surrounded by green landscaping and a road.

Photo Credit: DC Blox

A downtown Indianapolis meeting room was filled Wednesday as officials signed off on a proposed eastside data center, prompting an emotional reaction from residents who say the project should not be placed near homes, trails, and an elementary school.

Outside, dozens of opponents carried signs that said "Block DC Blox," "Stop the data center," and "Nope."

What happened?

The Metropolitan Development Commission approved Georgia-based developer DC Blox's plan for a data center campus in Warren Township despite sustained resistance from Irvington-area residents and school leaders, according to WFYI.

Community members who showed up to challenge the project reacted strongly to the vote, as seen in a video posted to Instagram by WTHR's Alex Almanza.

Because DC Blox sought a use variance instead of a full rezoning, the commission's decision is final.

DC Blox first proposed a $2 billion campus, then scaled it back to two buildings, removed 25 backup diesel generators, and widened the buffer south of the Pennsy Trail. Under the revised plan, a one-story, 70,000-square-foot building would be completed within two years, with a two-story, 250,000-square-foot building expected about five years later.

Critics said those changes did not address their core objection.

Irvington Community School Board member Eric Serrano argued, "A smaller version of the wrong use in the wrong proceeding is still the wrong thing."

Why does it matter?

The clash in Indianapolis is part of a growing national debate over where data centers belong and who bears the costs when communities are asked to host them.

Supporters point to tax revenue and infrastructure spending, while critics have raised concerns about noise, traffic, pollution, and neighborhood character beyond what its benefits might yield.

Those concerns can become even more acute when a project is tied to booming demand for AI and cloud computing.

AI can help improve forecasting, optimize clean energy systems, and make power grids more efficient. However, the computing behind AI also depends on energy-hungry data centers that can increase electricity demand, consume large volumes of water for cooling, rely on diesel backup systems, and potentially contribute to higher utility bills if grid upgrades are needed.

In Indianapolis, the location appears to be the key sticking point. Residents and school officials objected to placing a major industrial-style facility near an elementary school and a popular trail corridor, even after the project was reduced in size.

According to Councilor Andy Nielsen, 83% of respondents to his community survey opposed the development.

What's being done?

The approval came just days after a City-County Council committee introduced draft language for a Marion County moratorium on data centers through 2027.

During the hearing, City-County Councilor Jesse Brown urged the commission to support a data center moratorium. Commission President John Dillon declined, saying the body would wait for a City-County Council amendment on the issue, leaving the broader policy fight to countywide rulemaking.

Meanwhile, elected officials remain split. Councilor Michael-Paul Hart backed the project, arguing it would add to the city's tax base and provide money for nearby infrastructure improvements. Opponents, however, are likely to keep pressing for stricter siting standards, more public oversight, and clearer safeguards around emissions, power demand, and neighborhood impacts.

After the vote, Irvington resident Mikey Hess said, "It's very clear that this unelected committee does not have the community's best interests in mind."

"A smaller version of the wrong use in the wrong proceeding is still the wrong thing," Serrano said.

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