American Tower Halts Indianapolis Edge Data Center Project Amid Zoning Review
February 3, 2026
American Tower, a major player in digital infrastructure, has withdrawn its application to build a new edge computing facility in Indianapolis, Indiana, highlighting the growing tension between rapid data center expansion and local community planning. The move underscores the increasing scrutiny edge deployments face as they move into more populated areas, requiring operators to navigate complex regulatory and community landscapes. The company confirmed this week that it has paused its plans for a proposed data center at 7701 Walnut Drive in Pike Township, withdrawing its rezoning application with local authorities. The decision, first reported by local outlets IndyStar and Fox59, follows the company's initial filing for the project back in November 2025. The planned single-story facility was designed to span 20,000 square feet (1,860 square meters) with a capacity of 4MW, situated on seven acres of a larger 53-acre property that already hosts a 1,000-foot broadcast tower. In a statement, American Tower attributed the pause to ongoing revisions of the City of Indianapolis's zoning regulations, which could potentially restrict where data centers are built and their eligibility for tax incentives. "American Tower would prefer to review the project after this process has been completed," the company said. "Although we are not advancing this particular proposal, our decision reflects a desire to ensure that any future initiatives align with both local connectivity needs and community priorities." The company noted it could revisit the proposal once the new ordinances are finalized. The project faced significant local opposition, with a community group named Project Pike Township gathering over 1,200 petition signatures against the development. The group, which celebrated the withdrawal as a victory, has expressed ongoing concern due to the township's lack of data center-specific zoning codes. This case reflects a broader industry challenge of aligning edge infrastructure growth, crucial for low-latency applications like AI and IoT, with residential community expectations. The halted Indianapolis project was part of American Tower's broader strategy to leverage its extensive portfolio of cell tower sites for edge computing. The firm, which also owns data center operator CoreSite, has identified more than 1,000 sites in its portfolio as potential locations for 1MW edge facilities. It currently operates several small-scale "Access Edge" colocation sites across the U.S., including in Pennsylvania, Florida, Georgia, Texas, and Colorado, and recently launched a 1MW facility in Raleigh, North Carolina.
Source: datacenterdynamics
