Data Dominion: Power needs, pollution and politics collide at Amazon data center
Residents in New Carlisle, Indiana, are facing increased utility rates and environmental concerns due to Amazon's expanding data center. Their opposition recently led to the St. Joseph County Council denying a rezoning request for another proposed data center in the area. The article highlights the growing tension between economic development interests and local community impacts amidst rising electricity demands.
An Amazon data center in New Carlisle, Indiana, was ordered by the Department of Energy to cut 50 megawatts of electricity due to extreme cold, causing backup diesel generators to malfunction and release pollutants. Local resident Bob Humbarger expressed concerns about the lack of protections from big tech interests, noting a 9% increase in his electric rates while Amazon Web Services' (AWS) $26 billion data center expands near his farmland.
The AWS facility, once fully built, could consume up to 2.25 gigawatts, sparking fears among residents about rising utility rates and increased reliance on dirtier energy sources. This sentiment is echoed across Indiana, with other data center projects planned by Google, Meta, and Microsoft. Ben Inskeep, program director for Citizens Action Coalition (CAC), criticized the lack of public notification regarding the January grid emergency and highlighted that data centers are unprecedented stressors on the grid.
Despite an AWS spokesperson stating emissions remained low and investments benefit communities, local opposition led the St. Joseph County Council to strike down a rezoning plan for an unidentified company's proposed data center near Amazon's. This decision came after a contentious public hearing, despite a letter of support from local mayors and county commissioners, later revealed to be influenced by a public relations firm.
St. Joseph County has granted AWS over $9 billion in property tax abatements over 35 years. While county officials like Bill Schalliol argue these investments provide substantial tax base benefits and job creation, critics like Inskeep question the cost to taxpayers and the long-term job sustainability. The Indiana Senate recently rejected a bill requiring data centers to disclose power and water usage, further fueling environmental and consumer advocates' concerns about the project's sustainability and its impact on future utility rates and the environment.