Data Centers

Protecting Indiana Communities from Unchecked Data Center Expansion

Large‑scale AI data centers are spreading across Indiana, often without transparency, adequate planning, or community input. ICCP works to oppose such development whenever possible and ensure development is responsible, sustainable, and community‑centered when it is not.

Read the Statewide Policy Framework
Get Involved in Your County

What’s Happening in Indiana

Indiana has become a target for massive AI and cloud data center projects due to cheap land, favorable tax structures, and proximity to major fiber routes. While development can bring benefits, many proposals are being fast‑tracked with limited public notice, unclear long‑term planning, and significant strain on local infrastructure.

Residents across the state have raised concerns about:

  • Heavy electrical load and grid instability
  • Water usage and impact on local utilities
  • Noise, heat, and environmental effects
  • Land‑use changes that reshape rural communities
  • Tax incentives that shift costs onto residents
  • Emergency service burdens
  • Lack of transparency from developers and government agencies

Why It Matters

Infrastructure & Utilities

Data centers consume enormous amounts of electricity and water. Without proper planning, they can strain local grids, raise utility costs, and divert resources from residents and small businesses.

Environmental & Agricultural Impact

Industrial‑scale facilities can alter drainage, groundwater, soil conditions, and local ecosystems, especially when placed near farmland or rural communities.

Local Governance & Transparency

Many proposals move quickly through approval processes with minimal public input. Communities deserve clear information, honest communication, and a meaningful voice in decisions that affect them.

What ICCP Is Doing

Research & Transparency

We break down complex development proposals into clear, accessible information so residents understand what’s being planned in their area.

Community Engagement

We help residents organize, attend meetings, and make their voices heard. ICCP provides talking points, meeting guides, and support for local groups.

Policy Advocacy

We promote responsible development standards and work with communities to encourage local governments to adopt transparent, community‑centered policies.

Statewide Coordination

We connect counties across Indiana so they can share information, strategies, and lessons learned.

The Statewide Data Center Policy Framework

ICCP has developed a comprehensive statewide policy framework to help counties evaluate and regulate data center proposals responsibly. This framework is designed to protect communities, ensure transparency, and promote sustainable development.

Download the Policy Framework

How Your County Can Take Action

For Residents
  • Attend local planning or zoning meetings
  • Request public documentation on proposed projects
  • Ask your county commissioners to adopt responsible development standards
  • Join ICCP’s statewide network
For Local Officials
  • Review the ICCP policy framework
  • Conduct infrastructure impact assessments
  • Require transparent communication from developers
  • Ensure emergency services are adequately supported
For Community Groups
  • Organize informational meetings
  • Share updates with neighbors
  • Coordinate with ICCP for support and resources

Stay Informed / Get Involved

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FAQs

Do data centers create many jobs?

Not typically. Modern AI and cloud data centers are highly automated and require relatively few full‑time employees once construction is complete. Most facilities operate with 20–50 permanent staff, primarily in technical, security, and maintenance roles.

While construction may bring temporary jobs, long‑term employment impact is usually minimal compared to the scale of land use, utility demand, and tax incentives involved. Communities should weigh the small job footprint against the large infrastructure and environmental impacts.

Why do companies choose Indiana?

Indiana offers several advantages to large tech and industrial developers, such as low land costs, favorable tax incentives, access to major fiber routes, proximity to Midwest population centers, and counties with limited zoning or outdated development ordinances. These factors make Indiana attractive for rapid expansion, which is why community oversight and responsible planning are essential.

What is the environmental impact?

Environmental impacts vary by project, but common concerns include high water usage for cooling, significant electrical demand that can strain local grids, heat and noise output from cooling systems, stormwater and drainage changes due to large impervious surfaces, and loss of farmland or rural character. Without proper planning, these impacts can affect agriculture, local ecosystems, and nearby residents.

Can counties regulate data centers?

Yes. Counties have the authority to regulate data centers through zoning ordinances, land‑use planning, conditional use permits, infrastructure impact assessments, environmental review requirements, and utility capacity evaluations. Counties can also adopt responsible development standards, such as those outlined in ICCP’s Statewide Data Center Policy Framework. Local governments are not required to approve projects that lack transparency, adequate planning, or community benefit.

Are data centers noisy?

They can be. Data centers use large cooling systems, often industrial‑scale chillers, fans, or cooling towers, that produce constant mechanical noise. Depending on design and placement, this can affect nearby homes, farms, and outdoor spaces. Noise mitigation is possible, but it must be required upfront through local ordinances or conditional approvals.

Do data centers use a lot of water?

Many do. AI data centers can use millions of gallons per day for cooling, depending on the technology and climate. Even “air‑cooled” systems often rely on water during peak heat periods. This can strain municipal water systems, affect agricultural supply, and increase long‑term utility costs if not properly planned.

Do data centers use a lot of electricity?

Yes. Data centers are among the largest industrial consumers of electricity. A single facility can require as much power as a small town, which may trigger costly grid upgrades, increase local utility rates, reduce available capacity for residents and small businesses, and create reliability risks during peak demand. Counties should require independent utility impact studies before approving any project.

Do data centers create heat?

Yes. Servers generate significant heat, which must be removed through cooling systems. This heat is typically expelled outdoors, creating large thermal output zones around the facility. While not dangerous, it can affect microclimates, nearby properties, and local wildlife, especially when multiple facilities cluster together.

Data Center Tracking Map

Counties currently facing proposals or considering ordinances.

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Research Reports

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