In an ornate room at the Indiana State Library, more than 200 people from 40 counties across the state gathered on a cold February morning to talk about one thing: data centers.
“Our legislators need to keep hearing from us,” said Laxmi Palde, an organizer with Hoosier Action, a Southern Indiana community group that organized the hearing.
Big Tech companies are racing to build data centers in the state. So far, Amazon built an $11 billion data center near Lake Michigan. There's a $2 billion Google campus under construction in Fort Wayne. And Gov. Mike Braun just welcomed Meta to build a $10 billion project in Lebanon.
Developers are promising jobs and investment, but local communities are raising concerns about energy demand, land use and local control. Some residents hoped lawmakers would make an effort in the General Assembly to enact oversight for data center development.
But despite nearly a dozen bills filed, little new regulation of the industry was advanced. Much of the legislation introduced didn’t aim to slow development. Instead, it focused on making sure communities see some of the financial benefits.
That includes House Bill 1210, which requires data center companies to pay 1% of the savings from its total electricity bill to qualify for certain sales tax breaks. The bill now heads to Gov. Mike Braun for his signature.
But a separate proposal to reshape how data centers are approved drew backlash and died in committee.
House Bill 1333 would have allowed large developments — including data centers and solar farms — to be built on certain agricultural land without going through the usual local zoning process or public hearings, if the soil were classified as lower quality.
Critics said the so-called “permitted use” language would strip local governments of authority and shut residents out of decisions about rezoning land in their own communities.
The bill’s sponsor, Sen. Eric Koch (R-Bedford), later said in a statement that the permitted use language would “not move forward.”
Rep. Robin Shackleford (D-Indianapolis) introduced House Bill 1245, which would have required the Indiana Utility Regulatory Commission to study how new and increased electricity demand from data centers and other large energy users could affect the state. The bill never advanced beyond its first reading.
Will Stauffer, an organizer with Hoosier Action, said the push to rein in data centers won’t end with this legislative session — and it cuts across party lines.
“I’ve never met an issue that has more broad-based political support across the spectrum,” Stauffer said.
“Every legislator — I don’t care if they’re Republican or Democrat — and any candidate running for office, we have got to demand that regulating these data centers is part of the midterm election agenda.”
The legislative session ended Feb. 27. Republicans, who hold supermajorities, passed immigration enforcement and welfare reform bills. Democrats said not enough was done to address the rising cost of living in the state.
Farrah Anderson is an investigative health reporter with WFYI and Side Effects Public Media. You can follow her on X at @farrahsoa or by email at fanderson@wfyi.org