Decatur Township residents are asking a judge to review a land-use vote that would allow a $4 billion data center campus to take shape on 130 acres in the Indianapolis township on the far southwest side.
The Decatur Township Civic Council — alongside more than half a dozen township residents whose properties sit in close proximity to the proposed data center — filed a lawsuit asking the courts to review a zoning decision by the Metropolitan Development Commission to determine whether it harms neighbors, according to court documents filed April 17 in Marion County Superior Court.
Sabey Data Center Properties LLC, a subsidiary of Washington-based Sabey Corporation, got approval on March 18 to build a 250MW “data center technology park” on land at the northeast corner of Camby Road and Kentucky Avenue through a variance of use request. The site sits on land already categorized for light industrial use and therefore did not need a full rezoning.
Much of the residents’ concerns lie with the large amount of electricity and water required by data centers — facilities that house powerful computer servers powering the internet, cloud and artificial intelligence. The residents also note the long-term impact of building a hyperscale facility is largely unknown. But they also took issue with the city’s allowing Sabey to not fully rezone the land, which would be a more strenuous and longer process.
In the suit, residents represented by environmental law and property rights attorney Arie Lipinski, say that the Sabey data center does not align with the city’s comprehensive plan, which recommends village mixed-use development for the site. Furthermore, residents say the data center would “generate noise, air pollution, water contamination risks, fire safety hazards in proximity to residential areas and other potential harm.”
How and where data centers can be built has been an issue for the city of Indianapolis, which does not have a strict code for data centers as of now. However, on April 21, the Department of Metropolitan Development released a draft of a data center ordinance that would streamline the process and requirements to build such centers.
The Sabey lawsuit will test how courts receive data center litigation. Sabey’s development would be the first hyperscale data center in the Indianapolis city limits. Across Indiana, more than 40 data centers have been discussed, and two hyperscale data centers are up and running, one in Fort Wayne by Google and one in New Carlisle by Amazon Web Services.
Spokespeople for the Indianapolis City-County Council and the Metropolitan Development Commission, both defendants in the suit, said they do not comment on pending litigation. An attorney for Sabey Data Center Properties did not respond to an emailed request for comment, nor did Strategic Capital Partners, the business entity that currently owns the land.
What is judicial review?
Judicial review exists as a potential check on local zoning boards and commission who make land use decisions. As part of the legal process, a judge will review transcripts, decisions and arguments made over whether or not a zoning decision is fair.
The Metropolitan Development Commission approved Sabey’s request to build the 250MW center by a 6-2 vote on March 18. Because the petition was not a full land rezoning, it did not go before the Indianapolis City-County Council. All Commission decisions can be subject to judicial review.
In order to obtain a favorable outcome by a judge, the neighbors will have to show that the “order or determination is arbitrary, capricious, unlawful, or not supported by substantial evidence.”
Earlier this month, Randi Berryman, founder of Protect Decatur Township, a grassroots neighborhood group organized against the data center, said the neighbors directly surrounding the property planned to file for a judicial review. They had until April 17, or 30 days after the decision, to file a lawsuit. Neighbors raised money before and after the Commission vote to cover attorney and court fees, Berryman said.
“We needed the stones to be set,” Berryman said. “We needed to make sure the near neighbors” had the resources they needed, she added.
Protect Decatur Township has raised more than $10,000 to date through GoFundMe donations, checks and cash, Berryman said. The neighborhood group accepted at least one large anonymous donation that went to pay their attorney, Laureen White, who represented the group before the Metropolitan Development Commission in March.
In addition to crowdsourcing for donations on social media, the group has hosted multiple in-person fundraising events, including a karaoke night at Mark’s Pub, a bar across the street from the data center site. That event raised $500, organizers said. The group will host another fundraiser at the Culver’s location at 4701 Kentucky Ave. on April 27.
In total, the group hopes to raise $15,000. So far, they’ve spent more than $7,500 on legal services and fees.
Alysa Guffey writes business and development stories for IndyStar. Have a story tip? Contact her at alysa.guffey@indystar.com.
This article originally appeared on Indianapolis Star: Decatur Township residents ask courts to review data center decision
Reporting by Alysa Guffey, Indianapolis Star / Indianapolis Star
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