Recent AI worries behind Gary mayor’s one-year halt on data centers
Gary Mayor Eddie Melton declared a one-year moratorium on data center construction in the city due to concerns about the rapid advancement of artificial intelligence and its potential impact on infrastructure and resources. The city plans to use this period to study the long-term implications for the electric grid, water resources, environment, and economic development. Councilman Darren Washington voiced support for smaller data centers, suggesting they could help address local tax losses.
Gary Mayor Eddie Melton issued an executive order on Wednesday, enacting a one-year moratorium on data center construction within the city. Mayor Melton cited concerns from tech leaders regarding the rapid advancement and potential risks of artificial intelligence, emphasizing the need for federal guardrails. He stated that while AI offers significant economic potential, the city must address serious questions about safety, accountability, infrastructure, energy and water consumption, privacy, and community impact.
Currently, Gary has no data centers or plans for their development. The moratorium will allow the city to thoroughly evaluate the long-term implications of data centers, especially as neighboring communities see increased development. Mayor Melton stressed that the decision is not against technology but aims to prevent permanent decisions about a fast-evolving industry without full understanding.
During this period, the city intends to review electricity demand, impact on utility customers, water consumption, environmental considerations, infrastructure costs, emergency preparedness, tax revenue, job creation, and AI-related risks. Councilman Darren Washington, while supporting the overall study, expressed a preference for smaller 100-megawatt data centers, noting their long operational history without protest and their potential to offset tax losses from a recent property tax relief law, SEA 1. Both officials underscored the importance of responsible development that benefits Gary residents without sacrificing infrastructure reliability or quality of life.