Data centers need a lot of energy. Some turn to fossil fuels for power
Data centers in Indiana are creating massive electricity demand, comparable to entire cities. Utilities are planning new generation capacity, often relying on natural gas and fossil fuels, to power facilities for companies like Meta, Google, and Amazon. Concerns about transparency and environmental impact of these energy plans have been raised by watchdog groups.
Indiana's rapidly expanding data center industry is posing significant challenges for the state's utility companies, as facilities from tech giants like Meta, Google, Microsoft, and Amazon require immense, round-the-clock electricity — often rivaling the energy consumption of cities like Indianapolis. While utilities are working to meet this escalating demand, there are concerns about the transparency of their energy plans and their reliance on fossil fuels.
Northern Indiana Public Service Company (NIPSCO), through its entity NIPSCO Generation (GenCo), is contracting to power data centers for Amazon in Hobart and Google in Michigan City. These plans include dedicated power from new natural gas plants and battery storage, with filings at the Indiana Utility Regulatory Commission detailing significant capacity additions. NIPSCO also confirmed a new agreement with Hallador Power Company to purchase energy from the coal-fired Merom Generating Station in Sullivan County, which was previously slated for retirement.
Indiana Michigan Power (I&M) services Google in Fort Wayne, Microsoft in Granger, and Amazon in New Carlisle. I&M plans to bolster its generation resources with wind power and natural gas plant purchases, including an 870-megawatt plant in Ohio and a new 918-megawatt plant to be built in Sullivan County, Indiana. AES Indiana, serving Central Indiana, has approved two data centers in Indianapolis and plans to support Google's Monrovia facility with solar and battery storage. Meanwhile, Duke Energy Indiana sources carbon-free power for Meta's Jeffersonville data center off its system. Boone Power, an electric cooperative, is managing the energy supply for Meta's massive Lebanon data center, stating it will align the load with a dedicated, independent, carbon-free source through Wabash Valley Power Alliance rather than its existing resources.
Utility watchdogs, such as Ben Inskeep of the Citizens Action Coalition, criticize the lack of transparency, noting that some information is public while other crucial details remain secretive within regulatory filings. The substantial energy needs of these data centers are visibly shifting Indiana's energy portfolio, with a clear trend towards new gas plants and extended life for coal-fired facilities to ensure reliability and meet the growing industrial load.