Cleveland Rejects $1.6 Billion Data Center Proposal from Lakeland Equity Group
April 24, 2026
Cleveland Rejects $1.6 Billion Data Center Proposal from Lakeland Equity Group
The City of Cleveland has officially rejected a $1.6 billion proposal from private credit firm Lakeland Equity Group to build a hyperscale data center on a 35-acre site in the Slavic Village neighborhood. Mayor Justin M. Bibb announced the decision on May 14, 2026, stating that the city had "rejected the permit for the data center" at 3560 E 55th St, a location currently occupied by trucking company Morabito Enterprises.
The proposed campus would have been the city’s first state-of-the-art hyperscale facility, according to Lakeland’s application, featuring advanced power, cooling, and fiber connectivity. The project was designed to include three data center buildings spanning a total of 300,000 square feet (27,870 square meters) and offering 150MW of IT capacity. The identity of the end user for the campus remains undisclosed.
Lakeland Equity Group, which specializes in funding projects with equity gaps ranging between $1 million and $10 million, expressed disappointment in the city’s abrupt decision. In a statement to local media, the company said it was "disappointed by this abrupt action by the city" and is "considering our options for immediate next steps." The firm added that it looks forward to continuing to work with local government officials and community residents to help everyone consider the project’s merits, which it described as a job-creating initiative.
The rejection highlights the growing tension between local communities and data center developers, particularly in regions like Ohio where most facilities are clustered around Columbus rather than Cleveland. While Cleveland sits on the southern shore of Lake Erie and is home to some data centers, the Slavic Village proposal faced local pushback that ultimately derailed the project. This case underscores the challenges developers face in securing permits for large-scale infrastructure in urban areas, where community concerns and regulatory hurdles can outweigh the promise of economic benefits and technological advancement.
Source: datacenterdynamics
