Mayor Mueller announces update to "neighborhood first" data center framework

SOUTH BEND, Ind. -- The City of South Bend is moving forward on establishing rules for any potential data center proposals.  

While some Michiana communities are banning the often-huge artificial intelligence developments, South Bend is taking a different tactic: by setting some ground rules.

Mayor Mueller spoke with ABC57 Wednesday, providing an update on his "Neighborhoods-first" plan that was announced early last month.  

This framework lays out some ground rules for data centers in South Bend, where they have to meet a list of criteria, such as paying their own way, protecting natural resources and investing in neighborhoods.  

This plan only provides applies to data centers over 70 megawatts or 15 acres.

The public gave their take on the plan and approved some things, such as data center transparency, neighborhood revenue and these centers paying full taxes.  

But many were skeptical of job stability, noise and centers being near homes. 33% of respondents worried about long-term jobs, and the Mayor said:

"There are permanent jobs associated with these data centers, but there's also the investments they can make in the community. We're asking these companies that come in and invest to become part of the community; we're asking them to invest not only in our neighborhoods but also in opportunity, whether that's workforce development or other types of support."   

The Mayor also addressed the noise concern, saying there's a noise ordinance pending and if centers do testing, they have to do it during the day and not at nighttime. He also said new data centers won't be built near neighborhoods.  

"We would expect this industry to be located in an industrial district. We would not be looking to re-zone our residential district into use for a data center," Mayor Mueller said.