Loading map…
Regbase

The Data Center Divide

Spencer 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 Spencer County.

Specific to Spencer County only.

pending · Unincorporated areas
Would restrict data centers to qualifying industrial parcels in Spencer County and require special-exception approval, with standards for noise, power, water, setbacks, emissions, and screening.Spencer County, Indiana Ordinance No. 2026-07 (2026)

What this means

If enacted, this would make data center development substantially harder: projects could seek approval only on qualifying industrial parcels with existing or recent power generation or nearby transmission-level infrastructure, and would need a special exception. Strict requirements—including a 50 dBA noise limit and a 500-foot setback from specified neighboring properties—would further narrow feasible sites and increase compliance burdens (parcel eligibility; noise and setbacks).

People behind it

  • Named as the body ordaining the ordinance. “BE IT ORDAINED by the Board of Commissioners”

  • Responsible for holding the public hearing and reviewing the proposed data-center standards. “Review of an Ordinance to Establish Standards for Data Center Facilities”

  • Identified as Administrator of the Plan Commission and signed the hearing notice. “Kay Erwin Administrator”

Show 2 more peopleShow fewer people
  • Identified as a preparer of the ordinance. “PREPARED BY: Shiloh Counsel LLC”

  • Named in the ordinance’s preparer credit. “Joshua Claybourn”

Restrictions & requirementsHide restrictions & requirements19
  • Data centers are prohibited in agricultural, residential, and business zones. In I-1 and I-2 industrial zones, they are allowed only by special exception and only on a qualifying Power-Generating Industrial Parcel: one with a qualifying generation facility operating now or within the past 10 years and not fully decommissioned, or a transmission-level substation of at least 69 kV on or directly adjacent to it. Only as a Special Exception Power-Generating Industrial Parcel

  • A data center cannot be built or operated by right: it requires special-exception approval. The Plan Commission must hold a public hearing and recommend on the application, and the Board of Zoning Appeals must hold a public hearing and find the parcel eligible, the standards met, and the project consistent with the ordinance and Comprehensive Plan. Notice includes mailing to property owners within 1,000 feet. May be approved only as a Special Exception mailed notice to all property owners within 1,000 feet

  • The special-exception application requires a site plan and supporting information, including a qualified acoustical engineer’s pre-construction noise study; utility documentation of requested megawatts, delivery voltage and routing, and any substation; projected water use and wastewater arrangements; backup-generator details; energy-storage details; a landscape and screening plan; and a microgrid feasibility assessment. A Special Exception application for a Data Center shall include

  • Noise is limited to 50 dBA Leq at the parcel line; if pre-construction ambient noise already exceeds that, the data center may not increase it. Data-center-attributable dBC sound may not exceed the pre-construction ambient level. A post-construction study is due within 90 days after operations begin, and additional monitoring may be required after a credible complaint. shall not exceed 50 dBA

  • The facility may not exceed the maximum power demand stated in its utility documentation without new or amended special-exception approval. A material demand increase that materially changes specified site or operating impacts also requires amended approval. No Data Center shall exceed the maximum power demand

  • Data-center structures must be at least twice the width of an existing transmission line’s right-of-way away from that line. twice the width of that line's right-of-way

  • A privately owned substation or similar electrical infrastructure built primarily for the data center must be shown on the site plan and meet applicable zoning, setback, screening, stormwater, and improvement-location-permit requirements. shall be subject to applicable zoning, setback, screening

  • Before operations, the operator must file an updated water-use statement and evidence of Indiana DNR registration as a significant water-withdrawal facility if applicable, or explain why registration is not required. The statement must be updated annually. This statement shall be updated annually

  • Backup generation and other emissions-producing equipment must comply with applicable state and federal air-quality laws and permits. The application must identify equipment and anticipated impacts, and the Board may impose land-use conditions addressing location, screening, noise, testing hours, and other off-site impacts. If natural-gas turbines are used for primary or backup generation, they must have SCR systems using ammonia and demonstrate compliance with applicable PM2.5 standards. shall be equipped with SCR systems using ammonia

  • On-site energy storage must provide at least 10 hours of storage. Lithium-ion systems below that duration are disfavored and require the applicant to demonstrate fire-suppression and safety plans meeting NFPA 855 standards. minimum of ten (10) hours of storage

  • Structures, mechanical equipment, cooling towers, and backup generators must be at least 500 feet from specified property lines abutting residential or agricultural uses. A 1,000-foot setback is recommended and required where site conditions permit. minimum of five hundred (500) feet

  • Where an industrial parcel borders residential uses or agricultural-zoned properties with residences, the Board must require noise-generating mechanical equipment to be placed on the side farthest from those uses. sited on the side of the parcel farthest

  • Principal facades visible from public roads or neighboring residential or agricultural parcels must include fenestration or equivalent façade treatment. Landscaped buffers along public roads and residential or agricultural boundaries must provide at least 20 feet of effective screening height at maturity. visual screen of not less than twenty (20) feet

  • Building height is capped at 60 feet unless the Board finds additional height will not adversely affect neighboring properties and requires heightened setbacks and screening. Floor-area ratio is capped at 0.5 unless the Board finds a higher ratio compatible with nearby structures and uses. Building height shall not exceed sixty (60) feet FAR shall not exceed 0.5

  • Outdoor lighting must point inward and downward and be shielded to prevent off-site light spillage or sky glow, and must meet county lighting standards. directed inward and downward

  • County officials and applicants may not enter into nondisclosure agreements that limit public-records or open-meetings duties; applicants also may not request an NDA covering power arrangements, utility agreements, or infrastructure plans. shall not sign

  • A material change to an approved project—including floor-area expansion, increased power demand, added backup generators, or changed setbacks—requires new or amended special-exception approval. shall require a new or amended Special Exception approval

  • If a data center qualifies for the specified Indiana gross retail and use tax exemption, it must, before using a transaction award certificate issued after June 30, 2026, enter a written agreement with Spencer County addressing the County’s share of applicable sales-tax savings, if applicable. enter into a written agreement with Spencer County

  • Construction or operation without prior special-exception approval, and other ordinance violations, are subject to county civil and criminal penalties; each day of a continuing violation is a separate offense, and the County may seek an injunction. Each day of a continuing violation constitutes a separate offense

Benefits & exceptionsHide benefits & exceptions4
  • A data center can seek a Special Exception in the I-1 or I-2 industrial zone if the parcel qualifies as a Power-Generating Industrial Parcel. Eligibility includes parcels with a qualifying generation facility or a transmission-level substation on or directly adjacent to the parcel.

  • The Board of Zoning Appeals may allow buildings taller than 60 feet or a floor-area ratio above 0.5 if it finds the proposed development compatible or not adverse to neighboring properties; additional height is subject to heightened setback and screening requirements.

  • For private electricity generation facilities protected by state law, the ordinance limits the County’s authority as provided by that law and says it does not prohibit generation that state law protects.

  • The ordinance does not regulate specified decisions of regulated electric providers, including power-delivery routing, interconnection standards, service obligations, or transmission planning.

Sources

Data provided by Regbase · Cookie preferences · Report missing data