Developer Confirms Plans for Mini Data Center and Power Plant in Clay County, Indiana
Plans for a "mini" data center and power plant in Clay County, Indiana, have been confirmed by a representative of developer Terrence O'Malley. The project, still in planning, faces community concerns regarding water use, power consumption, and noise, despite the developer's assurances. O'Malley's companies also have a history of legal issues and irregular lease payments which have drawn scrutiny.
A representative for developer Terrence O'Malley, attorney Gary Hanner, has confirmed plans for a "mini" power plant and data center project south of Carbon in Clay County, Indiana. The project, currently in the planning stages with only site work completed, is being developed by Blue Power, a company connected to O'Malley.
Hanner addressed common public concerns about data centers, claiming the project's self-contained power source would not impact the local grid or electricity rates. He also stated that deep well water would be used for cooling, avoiding local drinking water sources, and that soundproofing would mitigate noise. However, at a recent Clay County Commissioners meeting, residents Kevin Schultz of MultiTek Global and John Kistler expressed skepticism about the developer's willingness to invest in full mitigation measures and the actual number of jobs the data center would create, citing examples of tax abatements yielding few local jobs.
Further complicating the project, O'Malley's companies have a history of legal and operational issues. Past entities, including Midwest Gas Storage, Inc. and ClayBridge (a former name for Blue Power), faced lawsuits from the Indiana Department of Natural Resources (DNR) concerning well integrity and abandonment, resulting in revoked permits and financial penalties. Local residents also reported irregular or minimal payments on gas storage leases with O'Malley's companies, prompting the Clay County Attorney, Eric Somheil, to advise against renewing such leases. Hanner acknowledged the need for better communication and outreach as the project progresses, especially given the perceived secrecy and the developer's past dealings.