Data center opposition, supporters react to Indiana’s data center incentives
Environmental and consumer advocates in Indiana criticize the state's data center incentives, citing concerns about utility costs, air quality, and environmental impact. Proponents argue the incentives attract significant investment and generate substantial tax revenue and jobs. Opposition to specific projects remains active, with one project recently approved despite resident objections.
Environmental and consumer advocate Ben Inskeep of the Citizens Action Coalition has labeled Indiana's data center incentives as detrimental, arguing they threaten the affordability, reliability, and sustainability of the state's power sector, leading to increased utility bills and environmental degradation. He specifically highlights an estimated $8.2 billion in subsidies for Amazon's New Carlisle data center in St. Joseph County, which he believes is a significant underestimate given it excludes future electric bill increases and sales tax exemptions over decades.
Conversely, economic development officials like Bill Schalliol of St. Joseph County and Jeff Rea of the South Bend Regional Chamber of Commerce defend the incentives, stating they are vital for attracting hyperscale investment and community development. They project that the New Carlisle Amazon project will generate over $2.3 billion in local tax revenue over 35 years. Amazon has stated plans to invest $11 billion in St. Joseph County and $15 billion across northern Indiana, anticipating contributions to the state's GDP and the creation of thousands of jobs. Heather Ennis of the Northwest Indiana Forum also supports the developments, emphasizing the region's desirable infrastructure and proximity to Chicago.
However, residents and opposition groups voice strong concerns. Angelita Soriano, a Hobart resident, lives near an Amazon construction site and worries about health, environmental impacts, and the strain on the electric grid. Barb Deardorff, a Kankakee Township resident, criticizes the approval of a $7 billion Amazon data center (Project Rise) in Jasper County despite overwhelming public opposition and questions the fairness of tax abatements for wealthy corporations. Lisa Vallee of Just Transition Northwest Indiana contends that tax benefits for data center operators are inequitable when Hoosiers face rising costs, and she fears ecological destruction and the vulnerability of local governments due to state-level property tax cuts.
Industry trade associations, including NetChoice and the Data Center Coalition, argue that Indiana's tax policies encourage investment by declining sales tax on equipment, not by writing checks. They assert that data centers create high-wage jobs, generate significant tax revenue for local services, and promote continuous reinvestment in energy-efficient infrastructure, all while supporting the state's economy.