Data center tracker: Where projects stand in Indiana
Indiana has 123 major data center projects planned by July 2026, leading to significant neighborhood opposition due to concerns over noise, pollution, high water and electricity usage, and a lack of job creation. Governor Mike Braun signed a new law requiring data center companies receiving sales tax exemptions to provide a percentage of their electricity bill savings to local governments. The state also continues to incentivize development through existing tax breaks.
As Indiana anticipates 123 major data center projects by July 2026, controversies are growing across the state. Data centers, which are physical buildings filled with equipment to support computing power and AI innovations, are facing strong opposition from neighborhoods concerned about noise, construction impacts, potential for pollution, high water and electricity usage, and a perceived lack of significant job creation. Large data centers are noted for requiring millions of gallons of water per day for cooling and for demanding immense electricity, with some projects expected to use enough energy to power a mid-size city. The reliance on diesel generators for backup power also raises concerns about air quality and public health.
Despite these concerns, data center companies claim they revitalize communities by providing direct and indirect jobs and injecting money into local economies. In a move to balance development with local benefits, Governor Mike Braun signed a significant Department of Local Government Finance bill on March 12th. This new law mandates that data center companies receiving future sales tax exemptions must give up to 1% of their electricity bill savings each quarter to local governments. This builds upon existing state incentives, such as the data center gross retail and use tax exemption, which provides sales and use tax breaks on qualifying equipment and energy, saving companies millions of dollars.