Indianapolis Data Center Moratorium, Water Use, and Environmental Concerns Discussed at Indiana Water Summit
Indianapolis has implemented a data center moratorium until 2027 to establish new zoning standards, driven by resident concerns over potential pollution and excessive water use. State officials are conducting studies on data center water consumption, proposing legislation for dedicated energy industrial hubs, and considering restrictions on water infrastructure funding for large developments. Discussions at the Indiana Water Summit also highlighted critical environmental issues like PFAS 'forever chemicals' and microplastics in the state's waterways.
Indianapolis has enacted a data center moratorium through 2027 to develop comprehensive zoning standards, following a period where several companies proposed projects in the city and faced community opposition regarding potential pollution and high water usage.
Water experts, scientists, and state officials convened at the White River Alliance’s Indiana Water Summit in Indianapolis to address water quality and the environmental impact of industrial developments, including data centers. Suzanne Jaworowski, Indiana Secretary of Energy and Natural Resources, confirmed the Indiana Finance Authority is studying data center water usage, which varies by facility size, and is considering legislation to establish large-scale energy industrial hubs away from communities to exclusively power data centers. These hubs would produce significant energy (3-5 gigawatts) and ensure data centers bear their own electricity costs, mitigating impacts on community water resources.
Further state efforts include potential restrictions on water infrastructure funding from the Indiana Finance Authority’s State Revolving Fund Loan Programs for communities approving large developments that negatively impact current ratepayers. Greg Swartz, environmental programs director, emphasized that new users should pay for the benefits they derive, not existing ratepayers. The Indiana Department of Natural Resources is also developing a statewide water inventory and management plan, mandated by Gov. Mike Braun’s 2025 executive order, to identify waterways, current usage, and future demands by October 2026.
Discussions at the summit also focused on emerging contaminants such as PFAS 'forever chemicals' and microplastics. Community water sampling by the Indiana Department of Environmental Management found PFAS in Marion County water systems. While federal regulations for PFAS exist, an Indiana bill co-authored by State Reps. Becky Cash and Maureen Bauer to set state limits failed in 2026 but will be reintroduced in 2027. Microplastics, found throughout Indiana, are currently unregulated but are being considered by the EPA for potential future regulation, pending further research on toxicology and risk assessment.