Urbana City Council met in regular session Tuesday, February 17, with a proposed billion-dollar data center project once again taking center stage.
The primary discussion focused on the proposed Urbana Technology Hub. Details were brought forth to the council today, officially claiming that a large data center is under consideration for property at the northwest corner of State Routes 55 and 68, adjacent to the Rittal facility.
Plans call for a single-story building approximately 40 feet tall and roughly 460,000 square feet in size. The structure would be set back from Route 68, with an earthen berm constructed to further limit visibility. Construction access would come from Route 55, and developers have proposed a loop road connecting Routes 55 and 68 to help manage traffic.
Developers describe the facility as a warehouse-style building housing computer servers that power digital services such as cloud storage, social media platforms, and emergency response systems. The project represents more than a $1 billion private investment.
According to information presented to the council, the development could generate more than $3 million annually in new tax revenue for the City of Urbana, including over $2.8 million for Urbana City Schools. The project is projected to create between 30 and 80 permanent operations jobs, along with more than 1,000 construction jobs over several years. The company has indicated it would prioritize local contractors and vendors when feasible.
Project representatives stated the facility would include significant sound-dampening measures and commit to set decibel limits through a Community Reinvestment Area agreement. They said water usage would be comparable to a standard office building due to closed-loop cooling systems, and that traffic would largely be limited to employee commutes. Developers also said residential and commercial electric rates would not increase as a result of the project, noting the site was selected for its available transmission capacity and that the company would pay for necessary infrastructure upgrades. Plans call for downward-directed lighting to reduce light pollution, and backup generators would operate only for testing or emergencies in compliance with environmental regulations.
The land is owned by Thor Equities, a New York-based private equity real estate company. Its digital infrastructure arm, Form8tion, is headquartered in London and focuses on global data center development. The firm has acquired multiple sites nationwide as part of its expansion into the data center industry.
During the meeting, the council voted 5-2 to remove a proposed 12-month moratorium on new data centers from the agenda. The resolution would have temporarily paused the establishment or conversion of structures into data centers to allow city officials time to study potential impacts on infrastructure, utilities, property values, environmental factors, and state regulations. Because the item was removed from the agenda, no action was taken.
Approximately 50 residents attended the meeting, with many expressing frustration over what they perceive as a lack of transparency. Some questioned the accuracy and completeness of the information provided and raised concerns about environmental and health impacts. Others voiced skepticism about the enforcement of project commitments, potential utility cost increases, and whether tax abatements would truly benefit the community. Several speakers said they support economic growth but are uncertain whether a data center aligns with Urbana’s long-term vision.
Mayor Bill Bean responded by defending the city’s handling of the project and its broader economic development efforts. He said economic growth has been a priority since he first took office in 2011 and pointed to the redevelopment of vacant land and the attraction of new businesses as examples of progress. Bean rejected claims that discussions were conducted in secrecy, stating that annexation of the land, zoning approvals, and the establishment of a Community Reinvestment Area all occurred through public meetings and recorded votes. He added that no specific development was guaranteed when the property was annexed and said significant public concern only emerged recently. The mayor maintained that the city followed proper procedures throughout the process.
Mayor Bean gives additional thoughts on the process and the data center discussion:
The next City Council meeting is scheduled for Tuesday, March 3.
