Lima City Council has approved a long-term water-service agreement to support a proposed $500 million data center campus in American Township. The company behind the project has not yet been named. City officials say the project will create about 50 permanent jobs and include $51 million in infrastructure improvements paid by the company, including $13.6 million for water-service upgrades.
Mayor Sharetta Smith said the customer expects to use about 5 million gallons of water per day, with a maximum of up to 10 million gallons daily under the agreement. Lima’s water plant can treat about 30 million gallons per day, and the city’s five reservoirs (Ferguson, Metzger, Lost Creek, Bresler, and Williams) hold roughly 15 billion gallons, according to the city.
“Offering 5 million gallons a day to a customer is not unusual, so we have the capacity to do more. The customer will pay for what they use, not our ratepayers,” Mayor Smith said. She added that the administration has “done our due diligence to confirm that we have the capacity to serve this project without compromising water security for residents,” and said the city is exploring a new water-treatment plant to expand capacity in the future.
Although the city’s post framed the project as a regional technology milestone, reaction online was mixed. Supporters cited new investment and infrastructure upgrades paid by the company. Critics raised concerns about high water and electricity demand, noise, and the low job count relative to the project cost.
City officials described the facility as an “artificial intelligence and high-tech data processing” operation. Data centers—especially AI-focused ones—can require significant cooling. Depending on design, cooling may be air-based with evaporative assist, chilled-water loops, or newer direct-to-chip liquid solutions. The cooling approach, usage caps, and monitoring details were not released with the council vote.
The data center site lies in American Township, with the City of Lima’s role limited to water service, similar to arrangements with other industrial users. The project was advanced in partnership with Allen County, American Township, the Allen Economic Development Group, Greater Lima Region, and the Allen Water District, according to the city.
Whats next?
– Company identity & site plan: The developer’s name has not been publicly released. Additional filings (site plan, permits, and utility details) are expected through township and county processes.
– Water specifics: Residents have asked for publication of daily usage estimates, cooling method, and any contractual usage caps or curtailment rules during drought or peak demand.
– Transparency: The city said it will continue evaluating treatment-capacity expansion to support industrial growth while maintaining residential supply.
LimaVoices will continue tracking documents and timelines associated with the project, including water-use reporting and infrastructure work funded by the company.