Plan commission looks at data center ordinance

Data centers are on the move in Indiana.

Jay County Plan Commission reviewed a draft ordinance Thursday for regulating the facilities.

Jay/Portland building and planning director John Hemmelgarn and assistant director Pati McLaughlin presented a draft ordinance, which defines data centers as “a facility or portion of a facility housing networked computer systems and associated components such as telecommunications equipment and storage systems used for remote storage, processing and distribution of data.”

Data centers are not considered a public utility, the ordinance says.

The draft proposed allowing data centers in agricultural residential zones with special exception use approval from Jay County Board of Zoning Appeals.

Setbacks are proposed at 1,000 feet from property lines, 2,500 feet from residences and 500 feet from road rights-of-way. As proposed, the data centers would have a maximum height of 35 feet.

Noise levels may not exceed 50 decibels. (The ordinance clarifies there are two types of noises data centers produce — daily operational sounds and noise from generators used for backup power during an outage.)

Other proposed stipulations included:

•Requiring a closed-loop water cooling system

•Limiting routine generator exercise maintenance between 9 a.m. and 5 p.m. Mondays through Fridays

•Keeping generators in an enclosure limiting sound to 50 decibels as measured 1,000 feet away

•Requiring at least a 6-foot-tall berm as a sound buffer

•Keeping lights shielded and downcast away from adjacent properties, structures or residences

It also includes building permit requirements. Companies seeking to build data centers in Jay County would have to apply, submit a site plan and provide state and local documents, such as a decommissioning agreement with Jay County Commissioners. Fees would be calculated at 5 cents per cubic foot of the proposed structure.

After reviewing a similar draft ordinance Oct. 2, Portland Plan Commission recommended the city not permit data centers within city limits or its 2-mile buffer zone.

“This is a starting place, we’re still working on it, but we just wanted to have something to give to everybody so that it shows we are working on this stuff,” McLaughlin said.

Jay County Development Corporation executive director Ceann Bales noted Thursday the county recently received a proposed state-directed resolution. 

Per the draft resolution — it will be discussed at Jay County Commissioners’ meeting on Monday — it would formally voice support for data centers or other large energy industries. Among other actions, it also says the county would streamline permitting, collaborate with the community to address noise, traffic and environmental impact concerns, encourage sustainability goals and “work with utility providers to ensure adequate power, water, and broadband infrastructure to support data center operations.”

Bales added that Indiana and Minnesota are the top two states for data centers. 

“The Secretary of Energy is asking us to show that we’re open for business,” said Bales. “We’re getting a lot, a lot of pressure, because energy is like the top of our governor’s push.”

Plan commission member Chad Aker, who also serves as Jay County Commissioners president, voiced concerns about approving the resolution before establishing an ordinance for data centers. 

Bales pointed out the county can always approve a resolution voicing support for wind and solar farms and tweak it later. She noted there’s a push to have resolutions in place by November.

The plan commission also reviewed a few additional edits to the solar and wind farm ordinances.

Most of the changes proposed Thursday were sections rewritten for clarity. New changes included:

•Requiring landscaping or buffer agreements between applicants, owners or operators and participating and non-participating landowners. (Landscaping or buffering stipulations may be waived as part of the agreement.)

•Relocating the section about fencing, which stipulates must be setback no less than 200 feet from property lines. Previously they were no less than 30 feet.

•Adding back in road use and decommissioning agreements, which were removed in the August draft.

McLaughlin said she would incorporate the proposed edits into the plans and share final drafts with plan commission at its next meeting.

Also Thursday, the plan commission heard the building and planning department has been working on drafting an ordinance to regulate small-scale battery storage projects. The department presented a draft to Portland Plan Commission last week.

McLaughlin explained she and Hemmelgarn met Wednesday with Jay County REMC officials, who presented paperwork citing Indiana Code 8-1-2-1(a)(2), which defines public utilities as groups “that may own, operate, manage, or control any plant or equipment within the state for the … production, transmission, delivery, or furnishing of heat, light, water, or power.”

She added that the company said because it is a public utility and would would be exempt from ordinances, setback requirements or other regulations.

“I get it,” added Hemmelgarn. “I guess it would’ve been nice to know six months ago.”

For that reason, the department is going to hold off on the small-scale battery storage ordinance for now. Plans are to let the county attorney look into the matter. In the meantime, the department will continue to work on drafting regulations for commercial-size projects.