Nearly a third of Indiana counties have moved to restrict data centers
Nearly a third of Indiana's counties have enacted moratoriums, bans, or new ordinances restricting data center development due to local concerns over water, electricity, and land use. While the state actively courts data center investments, local communities are pushing for more regulation and have expressed widespread opposition to these projects. Efforts are also underway at federal and local levels to introduce moratoriums and special zoning rules for data centers.
As Indiana aggressively pursues large-scale data center developments, nearly a third of its counties have enacted various restrictions, including moratoriums, bans, and new ordinances. This trend reflects growing local opposition driven by concerns over water and electricity consumption, land use, and environmental impacts like noise and air pollution.
Indiana University’s Environmental Resilience Institute reports that 11 counties have adopted data center ordinances, at least 17 have temporary moratoriums, and two—Marshall and Cass—have outright banned new data centers. This local action comes amidst a state push for data center investment, exemplified by Meta’s $10 billion facility in Lebanon.
U.S. Rep. André Carson (D-Indianapolis), alongside Sen. Bernie Sanders (I-Vt.) and Rep. Alexandria Ocasio-Cortez (D-N.Y.), has introduced the AI Data Center Moratorium Act of 2026, aiming for a federal pause on AI-powered data centers. Locally, the Indianapolis Metropolitan Development Commission recently voted 5-3 to recommend new zoning rules for data centers, despite residents protesting and asking for a pause in approvals. The proposed rules now await a vote by the City-County Council.