The Data Center Divide
A policy snapshot ahead of the 2026 midterms. Mapping data center incentives, restrictions, and bans through legislation, regulations, and executive actions across all 50 states and 1,462 local jurisdictions.
City of Valparaiso
This restriction takes precedence while in effect. The rating below excludes temporary restrictions.
Mixed Data Center Policies
Valparaiso has enacted a pause on approvals and permits for new data centers until it adopts rules, a process expected to take about 18 months. Existing lawful facilities may continue operating and receive routine maintenance.
Rating from Indiana statewide as there are no scored current or future laws outside temporary restrictions for City of Valparaiso.
current law · City of ValparaisoProhibits the City of Valparaiso from approving new data center development until data center rules are added to its development ordinance, or the moratorium expires or is repealed.Indiana Ordinance 16-2026 (2026)
What this means
The measure pauses approvals and permits for new data centers until the city adopts data-center rules; the city expected that process to take about 18 months (expected to take approximately 18 months). Existing lawful facilities can continue operating and receive routine maintenance, so it is not a full ban, but new projects face a major delay.
Timing
- Ends
- Upon the effective date of amendments to the Unified Development Ordinance establishing data-center regulations, or by 2028-07-31, whichever applies under the adopted version
The moratorium may be repealed or extended by the Common Council. The meeting minutes describe the approved ordinance as ending when the UDO amendments are adopted, while the draft also states an outside expiration date of 2028-07-31.
People behind it
- Councilmember Kapitan
Moved to advance Ordinance No. 16, 2026 for second reading and final approval, and moved for its approval.
- Councilmember Hunt
Seconded the motions to advance and approve Ordinance No. 16, 2026.
- Plan Commission
Held a public hearing on the ordinance and recommended approval by a 5-1 vote.
Restrictions & requirementsHide restrictions & requirements1
Temporary moratorium on new data centers: during the effective period, the City may not approve an application or issue a land-use approval or permit authorizing establishment of a new data center. The moratorium applies until UDO amendments regulating data centers take effect, unless repealed or extended, and in any event expires by July 31, 2028. Exceptions cover existing lawful uses, routine maintenance, repair or renovation of existing facilities, and projects with vested rights under Indiana law. The ordinance establishes a temporary moratorium on new data center development.
Benefits & exceptionsHide benefits & exceptions3
Existing lawful data-center uses are exempt from the moratorium, allowing them to continue operating. Existing lawful uses
Routine maintenance, repairs, and renovations of existing data-center facilities may proceed because they are expressly excluded from the moratorium. Routine maintenance, repair, or renovation
Projects with vested rights under Indiana law are exempt, allowing qualifying data-center development to proceed despite the moratorium. Vested rights have been established
Sources
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