The Urbana City Council voted Tuesday, October 20, to delay a decision on a proposed settlement agreement with Thor Equities over the Urbana Technology Hub data center project. Council members tabled the resolution by a 4-3 vote until their next meeting on Tuesday, November 3, which is also Election Day.
Before the vote, council entered an additional executive session that lasted about 90 minutes to discuss more details and ask questions about the settlement. The proposed settlement would resolve a federal lawsuit involving Thor Equities and the city, along with a related state-court appeal.
Residents and representatives of the city’s data center study committee spoke out against rushing the decision, urging council to allow the committee to finish its research into the project’s potential effects on the community.
Council can table the resolution as many times as it chooses, meaning a final decision may not come at the next meeting.
What the settlement includes
The proposed agreement would allow the data center project to move forward under city regulations that were in place on February 13, 2026. It would allow up to 2 million square feet of combined data center and related building space across future phases, excluding electrical, power-generation, and cooling equipment from that limit.
Thor would pay the city $50 million through an initial $5 million payment and additional payments tied to three phases of construction. City Council would decide how to spend the money on community improvements, emergency services, and other city needs.
The agreement would also require Thor to pay for an independent environmental study examining potential effects on Cedar Bog, water usage, and wastewater services. The company would help fund water and sewer improvements based on its actual usage and provide emergency and decommissioning plans.
The settlement would resolve the lawsuit, with Thor agreeing to drop its claims for damages and dismiss a related state-court appeal.
Urbana voters to decide on data center ban
Urbana voters will also consider a proposed city charter amendment on November 3 that would prohibit data center construction within the city.
The proposal defines data centers as facilities primarily used for digital information services, including data storage, processing, artificial intelligence computing and cryptocurrency mining. An exception would apply to certain smaller facilities owned and operated by a single organization for its own computing needs, with a power demand below 7.5 megawatts.
A majority vote is required for the amendment to pass.
A “YES” vote supports banning data centers in Urbana. A “NO” vote opposes the proposed ban.
The City Council’s next meeting is scheduled for Tuesday, November 3.
