Briefing 09/05/2025
Weekly updates on the political risks American data center projects
This week’s roundup: In Indiana, a bipartisan bloc of 15 Indianapolis councilors has lined up to block Google’s proposed multibillion-dollar Franklin Township campus, with a final vote set for Sept. 22. In Virginia, Diode Ventures scrapped plans for its $1B Roxbury Technology Park in Charles City County after eight months of resident-led pushback over rural character and infrastructure gaps. And in North Carolina, Dallas-based Compass Datacenters filed to rezone 340 acres in west Iredell County for a five-building campus, drawing swift opposition from neighbors just weeks after Tract’s $30B Mooresville proposal was blocked.
Bipartisan Efforts in Indianapolis Council to Block Google’s $2B Franklin Township Data Center
Google's proposed data center campus on 468 acres of farmland in Franklin Township, Indianapolis, is meeting bipartisan opposition. The project received an 8–1 rezoning approval from the Metropolitan Development Commission in August, but its future is uncertain as 15 City-County Councilors (a 60% majority) have since announced their opposition. District representative Councilor Michael-Paul Hart has reported receiving more than 200 emails from constituents and noted a petition opposing the project with over 1,000 local signatures.
Bipartisan opposition has solidified, with leaders citing environmental concerns and unsustainable tax incentives. A formal council vote is set for September 22.
Opposition:
Affected Project:
Google Franklin Township Campus: Estimated investment of between $1 and $2 billion in infrastructure and facilities.
Why it matters:
Urban flashpoint: Unlike rural Virginia or North Carolina fights, this project sits inside a major metro, where farmland conversion collides with dense community activism and a vocal city council. If Google can’t win in Indianapolis, developers will face steeper political risk in other U.S. cities.
Council-driven precedent: The bipartisan council revolt shows that rezoning approvals are no longer automatic. Developers now have to expect organized council opposition from both parties, not just routine planning board reviews, when weighing political risk.
Charles City Residents Block Diode Ventures’ $1 billion Data Center Proposal
Developer Diode Ventures withdrew its rezoning application for the proposed Roxbury Technology Park, a 515-acre data center campus in Charles City County, VA. The project had been backed by the county’s Planning Commission in May, but by late August, Diode pulled the plan just days before a Board of Supervisors vote.
Residents had organized for eight months, citing concerns about the industrialization of rural land, noise, and light pollution. Diode said the site lacked sufficient shovel-readiness due to power and municipal infrastructure constraints.
Opposition:
Charles Citizens First. Local platform organized in a Facebook group prepared campaigns against rezoning, citing threats to “rural lifestyle” and proximity to hundreds of homes.
Affected Project
Roxbury Technology Park, a $1 billion 515-acre project proposed by Diode Ventures. Plans included up to 1,200 construction jobs, 50–100 permanent jobs, and county infrastructure upgrades.
Why it matters:
After planning approval withdrawal: Despite initial planning approval, sustained community organizing derailed a hyperscale-sized project. This shows that vocal, persistent opposition can override technical endorsements.
Regional momentum: Central Virginia is becoming a hotbed of pushback—nearby counties, including Henrico, Chesterfield, Goochland, and Louisa have also faced withdrawals, stricter zoning reviews, or organized campaigns.
Compass Plans 340-Acre Data Center in Iredell County, NC, amid Neighbors’ Opposition
Dallas-based Compass Datacenters has filed rezoning plans in Statesville, NC, for a five-building campus on 340 acres of farmland near the I-40 Stamey Farm Road exit. The proposal is the second major data center pitch in Iredell County this year, following the collapse of a $30B plan in Mooresville backed by Teresa Earnhardt and Tract.
At an August 14 public information session, about 60 residents attended—well beyond those formally notified. Opponents, including Lynne Taylor, a lead organizer against the Mooresville site, criticized the project as a threat to farmland, natural resources, and rural character.
Opposition:
STATESVILLE….NO TO REZONING NO TO DATA CENTER: A Facebook group with over 900 members coordinating local residents against the project.
Affected Project:
Stamey Farm Road Compass Datacenters: 340-acre, five-building campus in west Iredell County, NC.
Why it matters:
Pattern of resistance: This is the second time in 2025 that Iredell residents have mobilized against a large-scale data center. Community organizing already forced Tract to withdraw Earnhardt’s project; Compass could face a similar uphill battle.
Local government pressure: Statesville’s Planning Board (Aug. 26) and City Council (Sept. 15, Oct. 6, Oct. 20) hearings will test whether elected officials align with community pushback or the county’s economic development ambitions.
Big picture:
North Carolina is emerging as a contested frontier for hyperscale development. While the state offers energy and land advantages, repeated defeats in Iredell County show how fast opposition can escalate.
Links
“State floating new rules for data centers.”
https://capitol-beat.org/2025/09/state-floating-new-rules-for-data-center-projects/
“AI data center growth raises Pittsburgh-area hopes, but community benefits aren’t guaranteed.”
https://penncapital-star.com/energy-environment/ai-data-center-growth-raises-pittsburgh-area-hopes-but-community-benefits-arent-guaranteed/
“Mayors of Fargo, Harwood spar over $3B AI data center project.”
https://kfgo.com/2025/08/29/listen-mayors-of-fargo-harwood-spar-over-3b-ai-data-center-project/
“Data Centers That Don’t Exist Yet Are Already Haunting the Grid”