Power Needs, Pollution, Local Politics Collide At Amazon Data Center
An Amazon data center in New Carlisle, Indiana, experienced an electricity cut-off that led to pollution from malfunctioning backup diesel generators. Residents are actively opposing data center expansion due to concerns about utility rates, environmental impact, and significant tax abatements granted to developers. This opposition has successfully blocked a proposed data center in the area, amidst broader statewide concerns about energy demands and regulatory transparency.
On January 27, a massive Amazon data center in New Carlisle, Indiana, was ordered by the Department of Energy to cut 50 megawatts of electricity during a cold snap. This led to backup diesel generators firing up, but frozen air lines caused pollution control equipment failures, releasing smog-contributing pollutants for five hours. Local resident Bob Humbarger, 85, expressed concern over the lack of notification and protection from the facility, which is part of Amazon Web Services' expanding $26 billion hyperscale campus. He noted rising electricity rates and felt residents' concerns at zoning meetings were ignored.
The Amazon data center, which could consume up to 2.25 gigawatts upon completion, is the largest private investment in Indiana's history. Residents fear its colossal energy needs will escalate utility rates and increase reliance on fossil fuels. Ben Inskeep, program director of Citizens Action Coalition, criticized the lack of public disclosure regarding the January grid emergency, noting it was reportedly the first instance of a US data center being ordered to reduce grid consumption during extreme weather. AWS spokesperson Adrienne Talbot stated that total emissions remained below 1% of permitted levels and emphasized the company's commitment to maintaining vital services.
The issue extends beyond New Carlisle; residents in other Indiana townships have pushed back against proposed data centers, with a Google project in Franklin Township being blocked. Meta is planning a $10 billion development in Lebanon, and Microsoft is eyeing Granger. Indiana Michigan Power (I&M) anticipates tripling electricity sales to meet demand from an estimated 120 data center buildings across the state, potentially doubling state power use within a decade, according to a Purdue University report. This unprecedented load growth raises concerns about grid stability and increased use of fossil fuels, as I&M considers buying gas plants and keeping coal plants online.
Despite promises from St. Joseph County officials, including economic development director Bill Schalliol, about tax base benefits, job creation, and potential rate reductions due to Amazon's investment in grid upgrades, residents and advocates remain skeptical. They point to over $9 billion in property tax abatements and sales tax breaks granted to AWS as subsidies to a wealthy corporation. Last December, the St. Joseph County Council denied a rezoning petition for another proposed hyperscale data center near Amazon's facility in New Carlisle, citing public opposition and the need for the town to absorb existing impacts. State efforts to mandate data center power and water disclosure were rejected by the Indiana Senate, further fueling concerns about accountability and environmental impact.