After months of public opposition and standing-room-only meetings, the Urbana City Council voted Tuesday night to reverse a zoning change that had cleared the way for a proposed data center south of the city.
Council unanimously approved Ordinance 4635-26, restoring the city’s zoning code to the version that existed before a 2025 amendment allowed data centers in Urbana’s M-1 Light Manufacturing District.
The vote followed a recommendation from the Urbana Planning Commission, which voted 7-0 in May to support the change. Council also held a public hearing on June 9 before taking its final vote Tuesday night.
The proposed data center has been a major topic in Urbana for months. Residents have repeatedly filled council chambers, speaking against the project and asking city leaders to remove data centers as a permitted use under the current zoning rules.
Tuesday’s meeting drew another large crowd, one of the biggest seen in recent years. Residents continued to voice their concerns before the council cast its vote.
The video below shows the reaction from local residents following the vote.
When the ordinance passed, the room broke into applause. Many residents cheered, hugged, and celebrated after spending months attending meetings and speaking out against the project.
The vote comes even as developers continue to buy land near the proposed site.
Thor Equities and its partners have spent the last two years purchasing property south of State Route 55 and west of U.S. Route 68 for a possible data center campus. In late 2025, the company purchased two parcels totaling about 133 acres.
Then on June 5, less than two weeks before council’s final vote, Thor purchased nearly 100 more acres from Organ Farms for about $3.4 million. The land could have provided another access point into the development from U.S. Route 68.
That purchase raised questions among residents, especially as council was actively considering reversing the zoning changes needed for the project.
While the ordinance removes data centers as a permitted use under the current zoning code, it remains unclear what effect the vote will have on the future of the proposed development or what steps developers may take next.
In other business, council approved Urbana’s tax budget for 2027. The budget outlines the city’s expected revenue and spending for the upcoming year and will now be submitted to the Champaign County Auditor.
The next meeting of the Urbana City Council is scheduled for July 7.
