Posey County
Mixed Data Center Policies
Indiana offers qualifying data centers sales-tax breaks and possible local property-tax exemptions, while utility-related requirements may add costs or delay projects. State energy planning could support reliable power, but no new projects or direct incentives are guaranteed.
Rating and summary from Indiana statewide as there are no scored current or future laws outside temporary restrictions for Posey County.
Specific to Posey County only.
pending · City of Mount Vernon, Town of Cynthiana, Town of Poseyville, and unincorporated areas of Posey CountyProposes to allow data centers only by special exception in industrial districts and require detailed approvals and safeguards for noise, water, power, traffic, safety, and decommissioning.Posey County UDO Amendment No. 4, “Data Centers” (2026)
What this means
The proposal would make new data centers and expansions much harder: they could only be approved as special exceptions in industrial districts and would need extensive reviews, studies, and financial guarantees (not permitted by right). It also adds strict siting and operating rules, including large setbacks and ongoing testing, creating substantial costs and delays (setbacks for Data Center Major and Data Center Minor).
People behind it
- Posey County Board of Commissioners
County legislative body proposing, considering, and adopting the amendments to the Unified Development Ordinance.
- Posey County Area Plan Commission
Commission that developed and recommended the proposed Unified Development Ordinance amendments and conducts the related public hearings.
- Jerry Cotner
Executive Director of the Posey County Area Plan Commission, which issued the public-hearing notices and administered the amendment process.
Show 2 more peopleShow fewer people
- Maegen L. Greenwell
Posey County Auditor who issued the county notice of the public hearing and identified the deadline for written objections.
- Joseph H. Harrison, Jr.
Posey County Attorney who prepared the ordinance instruments and approved them as to legal form.
Restrictions & requirementsHide restrictions & requirements31
Data centers are prohibited as a by-right use in every zoning district; they may be approved only as a special-exception use in I-1 light-industrial or I-2 heavy-industrial districts.
Data centers are classified as minor if they measure 100,000 square feet or less and major if they exceed 100,000 square feet; the total includes supporting uses and exterior equipment such as substations, electrical yards, mechanical yards, generators, and generator pads.
A data center requires preliminary and final special development plan approval from the Area Plan Commission, in addition to any required special-exception approval.
The Area Plan Commission may not approve a special exception unless the facility meets all data-center structural and performance standards and is consistent with the Unified Development Ordinance and the County Comprehensive Plan.
Any material change to an approved special exception—including expanded floor area, increased power demand, additional backup generators, or altered setbacks—requires new or amended special-exception approval.
A variance may be requested only for standards marked with an asterisk, and a variance involving height, setbacks and separation, or signage must be approved by the Board of Zoning Appeals before special development plan approval.
Data-center buildings and structures are limited to 30 feet in height unless specified firefighting equipment is available; even then, the maximum is 75 feet in an I-1 district or 100 feet in an I-2 district, subject to the underlying zoning height limit.
Data centers must maintain setbacks of at least 1,000 feet from a residential dwelling on adjacent A-1, A-2, R-1, R-2, or R-3 land and 500 feet from adjacent land zoned A-1, A-2, C-S, R-1, R-2, R-3, C-B, R-O, C-1, C-2, or C-3.
Primary generators may not be used as a data center's power source; generators are limited to outages, emergencies, testing, maintenance, commissioning, repairs, or legally required activities.
Outdoor generators must have acoustic barriers or walls, meet the EPA's most stringent emissions tier, and may be tested no more than once per week between 8 a.m. and 5 p.m., unless the Administrator approves an alternative based on documentation showing neighboring properties will not be adversely affected.
On-site energy storage must provide at least 10 hours of storage; lithium-ion systems that do not meet that minimum are disfavored and require demonstrated fire-suppression and safety plans meeting NFPA 855.
Data centers must comply with I-1 or I-2 noise standards, including a certified acoustic and vibration analysis, baseline measurements, post-operation testing, and a limit of no more than 5 dBA above the baseline and never more than 65 dBA.
Tonal or narrow-band low-frequency sound attributable to the data center may not exceed the pre-construction ambient dBC level at the property line, and additional noise monitoring may be required after a credible complaint.
Applicants must provide extensive power documentation, including requested megawatts, voltage and routing, utility agreements and Indiana Utility Regulatory Commission filings, the status of utility applications, and the location, design, and ownership of required substations.
Applicants must submit water, wastewater, cooling, and water-well plans addressing supply capacity, projected use, reclaimed-water use, cooling methods, discharge permits, hydrology, and mitigation for damage to adjacent wells or loss of water use.
Applicants must hold a public open house before the first Area Plan Commission hearing on the preliminary development plan, publish notice in a local newspaper at least 10 days beforehand, use a facility with capacity for at least 100 attendees, and accept public questions and comments.
The Area Plan Commission may require an independent technical consultant to review the project throughout preliminary and final review, construction, and inspection, with all consultant costs paid by the applicant.
A preliminary application must include detailed project, ownership, mapping, site, utility, power, water, construction, transportation, lighting, emergency-response, emissions, landscaping, coordination, noise, telecommunications, and natural-resource reports.
A final application must include approved transportation and drainage plans, financial assurance for road and drainage repairs, safety and security plans, coordination reports, a decommissioning plan, and a construction bond.
Applicants must provide financial assurance for decommissioning, with the assurance in place before a certificate of occupancy; the decommissioning plan and security must be reviewed every five years, and the security must cover removal and disposal of hazardous materials, batteries, fuel systems, underground tanks, cooling infrastructure, and other regulated materials.
A construction bond must remain in effect from commencement of construction through issuance of the certificate of occupancy, and the applicant must demonstrate funding for 100 percent of estimated construction costs, performance and payment sureties, warranties, and specified insurance.
Before improvement location permits or construction, the applicant must obtain all applicable state and federal permits, maintain at least $2 million per occurrence and $5 million aggregate bodily-injury/property-damage coverage, maintain environmental-contamination coverage of at least $1 million per occurrence and $2 million aggregate, and name the County and host municipality as additional insureds.
Construction hours are limited to Monday through Friday from 7 a.m. to 7 p.m. or dusk, whichever comes first, and Saturday from 8 a.m. to 5 p.m.; construction is prohibited on federal holidays, Mother's Day, and Father's Day unless the Area Plan Commission modifies the hours.
Construction and operation require transportation studies and plans, pre-construction road surveys, financial assurance for road and bridge damage, and possible ongoing repair fees and surety bonds for affected transportation infrastructure.
Noise testing must begin within 30 days after construction starts and continue at least every 90 days during construction; noncompliance with the approved plan may require operations to cease until corrective measures and further testing establish compliance.
After operations begin, noise, vibration, and lighting testing is required within 30 days, every three months during the first year, annually thereafter, after certain expansions or equipment replacements, and whenever requested by the Area Plan Commission, County, or Building Commissioner.
A data center is presumed abandoned after 24 consecutive months of nonoperation, subject to stated exceptions for utility-power delays, phased construction, or equipment replacement and subject to an approved plan for returning the facility to service.
Violations may result in daily civil penalties, stop-work or cease-and-desist orders, and permit revocation; exceeding noise limits is listed as a Level 2 violation carrying $2,500 for the first day and $7,500 for each subsequent day.
An application for final development plan approval must be submitted within two years after preliminary approval, or the applicant must resubmit the preliminary plan before pursuing final approval.
The applicant may not expand a completed building or the approved project boundaries without Area Plan Commission approval after a public hearing.
Before using a sales-tax exemption certificate, an applicant, owner, or operator must enter into an agreement requiring a mandatory 1 percent revenue-share payment based on unpaid state gross retail and use taxes on electricity billed to the data center.
Benefits & exceptionsHide benefits & exceptions10
Data centers are expressly eligible for approval as special-exception uses in I-1 and I-2 industrial districts. A Data Center Minor is allowed in I-1, while both Data Center Major and Data Center Minor are allowed in I-2, subject to the ordinance’s standards and approval procedures. Data centers may be approved only as a Special Exception Use in I-1 or I-2 districts.
The Area Plan Commission may appoint a hearing officer to approve or deny special exceptions, variances, and special uses under an alternate procedure, potentially allowing data-center approvals to be handled without the full ordinary process. The decision may be appealed to the Board of Zoning Appeals within 14 days. The APC may appoint a hearing officer.
Applicants may seek variances from data-center height, setback-and-separation, and signage standards, although the variance must be approved before special development-plan approval and other standards remain mandatory. Variances may only be requested for relief from the standards denoted with an “*”.
The ordinance permits buildings or structures up to 75 feet in I-1 districts and 100 feet in I-2 districts when the applicable fire department or the data center has approved firefighting equipment capable of addressing fires at those heights. The underlying zoning height limit still applies. No Data Center building or structure may exceed thirty (30) feet in height unless.
Required landscaping, buffers, and fencing may be placed within required setbacks, and landscaping or buffers are not required next to land zoned I-1 or I-2. The APC may also allow ancillary buildings, such as guardhouses, offices, or maintenance-storage buildings, within setback areas. Landscaping and/or buffers are not required in any area adjacent to land zoned I-1 or I-2.
The ordinance provides a procedure for expanding an approved data center: expansions beyond the approved project or expansion of a constructed building or structure may be approved by the APC after a public hearing. Increased power demand or other material changes require a new or amended special-exception approval. the Applicant may not thereafter expand ... without further approval by the APC.
Backup generators and battery systems are permitted to support data-center operations. Generators cannot be the primary power source and are restricted to outages, emergencies, testing, maintenance, commissioning, repair, or legally required activities; outside generators must meet emission requirements, be acoustically enclosed, and generally may be tested only once weekly between 8 a.m. and 5 p.m. Battery backup systems are permitted to provide instantaneous power.
A data-center applicant may seek tax abatement or other economic benefits from Posey County through an Economic Development Agreement with the County Commissioners. The agreement must be developed with the local economic-development organization and County Council and must address projected taxes, abatements, payments, lease revenue, and fiscal impacts. For any project seeking tax abatement or other economic considerations.
Before using an issued specific transaction award certificate, a data-center applicant, owner, or operator may enter into a sales-tax-exemption agreement with the County or applicable municipality. The agreement requires a mandatory payment equal to 1% of unpaid state gross retail and use taxes on electricity billed to the data center. enter into an agreement ... establishing the mandatory 1% Revenue Share payment.
The ordinance supplies a property-value-guarantee form that County officials may require or use when negotiating economic incentives. It would allow eligible owner-occupied residences within one mile of the data center, owned by owners of record when the secondary development plan is approved, to receive a guaranteed value for a specified period. The form is recommended rather than automatically required, and its duration and listing period are left blank for negotiation. The following form of a Property Value Guaranty is recommended for use in negotiations.
Sources
Data provided by Regbase · Cookie preferences · Report missing data
