Urbana council imposes 12-month moratorium on data centers after residents raise environmental and transparency concerns

Urbana City Council voted 6-1 on March 3 to impose a 12-month moratorium on establishing or converting buildings into data centers, directing staff to study impacts on water, the power grid, noise, property values and applicable state and federal regulations.

The moratorium — introduced by Law Director Mark Feinstein and placed on the agenda through a walk-in — passed after brief council remarks and extensive public comment. "This resolution would impose a twelve-month moratorium on data centers while the City would evaluate the impact on the local community," Feinstein said as he introduced the measure. Council member Thackery moved the resolution and Jumper seconded; a roll call yielded Yes from Davis, Thackery, Truelove, Collier and Jumper, No from Mrs. Bean, and Yes from Scott, concluding 6-1.

Developers from Thor Equities and data-center operator Cyrus One presented the proposed project and its claimed benefits at the meeting. Raj Vohra (Thor Equities) said the site being considered is next to Rittal and described Highland Real Estate as a development partner. Chris O'Grady of Cyrus One said the company had locations in Cincinnati and Lebanon and estimated that "this project would raise three million dollars annually to Urbana in taxes." O'Grady also said the facility planned closed-loop cooling and that daily water use would be "similar to twelve residences," and that backup generators are used "fifteen to twenty hours a year roughly." He said the developer would pay for any needed grid infrastructure upgrades.

Residents and local experts countered that the city needs more study before permitting large computing facilities. Judy Page, president of the Cedar Bog Association, told council that Cedar Bog — a National Natural Landmark that draws thousands of visitors — is dependent on a vulnerable aquifer and that "once it's gone, it's gone." Botanist Jim McCormac and other speakers described the bog's rare plants and urged protecting its water, while several residents described long family ties to Urbana and said the town's character and natural resources should not be risked for a single development.

Speakers also raised procedural concerns. Brad Winner said prior ordinances in April 2025 included language allowing computing infrastructure and argued the public did not understand what was being authorized. Erin Patton accused city leadership of misleading the public about when officials learned of the project and said the use of multiple LLCs in the land purchase raised transparency questions. Developer representatives told council they were engaging the community and said they followed required zoning steps.

Council members and the Law Director framed the moratorium as a measured pause to allow city staff and council time to review state-level studies and to seek expert analysis. Feinstein declared the moratorium an emergency so it could take effect immediately. The moratorium runs for twelve months from its effective date unless council acts sooner.

Next steps listed by council include city staff review of applicable Ohio statutes, state agency reports (including ongoing or proposed state-level study bills), evaluation of wastewater and water-use implications, and additional public engagement. The council meeting record shows the moratorium will allow the administration and council time to investigate impacts on city resources and property values and to review the State of Ohio legislature's evaluations and applicable codes.