South Bend: City Releases Draft Neighborhoods-First Framework for Data Centers

~ South Bend has released a draft framework setting out standards and community benefits that any future hyperscale data center project would be expected to meet.

The city said the Neighborhoods-First Framework for Data Centers: Protection Standards and Neighborhood Investment is organized around requirements to protect residents and resources, and commitments to provide long-term benefits to residents.

Mayor James Mueller said the framework is intended to ensure projects cover their local costs, protect neighborhoods and natural resources, use local labor and provide fair returns to the community.

The draft identifies five core principles: projects must pay their full share of local costs without local subsidies; be good neighbors; use water and energy efficiently and protect the wastewater system; use local labor; and deliver a fair return.

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The city said it plans to propose a noise ordinance to protect homes and businesses near data centers. The framework also calls for projects to support the city's climate and sustainability goals and to use project labor agreements, community workforce agreements or equivalent arrangements for construction.

Under the proposal, South Bend would dedicate all tax revenue it receives from hyperscale facilities to neighborhood improvements. The funds would be divided evenly between neighborhood infrastructure and affordability, and neighborhood climate action and utility relief, the city said.

The draft also sets expectations for workforce development, emergency preparedness and ongoing community engagement throughout a project's life cycle.

Residents can review the framework and supporting materials at southbendin.gov/data-centers and submit feedback through an online form or by calling 311 to leave a voicemail. The public comment period runs through Oct. 31. The Mayor's Office will review feedback before the framework is finalized and published.

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