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As a subscriber you can listen to articles at work, in the car, or while you work out. Subscribe NowGov. Mike Braun warned that Indiana needs swift solutions for its bevy of water and energy “challenges” to support the state’s expanding manufacturing sector.
The Republican governor gave candid remarks at a fireside chat at the 2025 Indianapolis Investment Forum held Tuesday at the Indianapolis Motor Speedway.
He touted Indiana as “the biggest manufacturing state in the country” and hoped for the Hoosier State “to be on the leading edge of the new base load.” Currently, though, “we clearly don’t have enough electricity.”
“Right now, (Indiana has) all kinds of opportunities that straddle AI and technology. We’ve got the biggest two issues, probably in the state, that have come out of nowhere—the availability of water and electricity,” Braun said. “Neither one of those was on the horizon. But if you’re going to tap into that new technology, you’ve got to have it.”
Utilities based in Indiana currently produce just 20 gigawatts of electricity, Braun emphasized. A single data center could consume 5% of that total capacity.
Indiana is already home to more than four dozen data centers—powerhouses for the AI boom. Citizens Action Coalition, a utility-focused customer advocacy group, has tracked nearly 30 more energy-demanding facilities that have been proposed across the state.
Part of the issue, Braun said, “is we’re shutting down our coal fleet prematurely.” Had Indiana “known” earlier that an influx of data centers and other development would create such an energy demand, “then we wouldn’t be in the pickle we’re in now—because we were so dependent on (coal).”
“If you don’t keep up with it, you’re going to pay even more for it,” Braun continued, referring to energy generation. “You’ve got to get a little bit out of your comfort zone.”
An ongoing, statewide push seeks to attract various high-tech industries to Indiana. Braun said data centers, in particular, “want to come here because we’re at least one of the 15 states blessed with some water.” Even so, it’s a resource that Indiana “doesn’t have in abundance.”
The governor said Indiana’s energy future “will probably be small modular reactors,” or SMRs. State lawmakers, with Braun’s support, already adopted new nuclear energy incentives during the 2025 session.
“I see an unbelievable opportunity, if again, we can set the stage,” Braun said about SMR technology, although nuclear developments are likely still a decade away. “I hope to be the first guy. We’re leading a consortium of them to get out on the leading edge.”
And with more manufacturing comes a need for even more STEM-trained workers, Braun added.
The governor said he’ll largely judge his administration’s achievements by its economic development gains—particularly regarding workforce development, skills training and attracting young talent for careers in emerging technologies.
“Are we getting more of our own kids to come back to Indiana, to raise a family, and start a business?” Braun asked. “If we can measure that, and do it well … we would call it a real success.”
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Indiana needs to determine whether these data centers are worth attracting. The investment can be large but the jobs are usually de-minimis and the demands for water and electricity are significant potentially increasing costs to other consumers.
I’m of the opinion that they are not. We’re spending a boat-load of money and resources to draw them here and, as you mentioned, they don’t provide many jobs and they don’t really pay all that well. These data centers are also being located farrrrr away from their respective labor markets (just like the distribution and fulfillment centers). This isn’t going to keep the high-talent grads from Purdue, IU, Rose-Hullman, Ball State, Notre Dame, etc. from leaving Indiana. They will still go to Chicago or the coastal metros where the major corporate offices are and where the real programming work happens.
People vote with their feet. Right now (and for quite some time), it’s looking like “use tax dollars to draw in low-wage jobs,” and, “Let’s cheapen ourselves and hope that people are willing to put up with poor quality of public services,” are a losing economic strategy.
And by all means, let’s eliminate the opportunity for additional power generation by gutting wind and solar options….. the thought of helping too ease the power shortage while trying to save destruction of the planet, is just a step too far for Indiana.
🙂
Sorry typo: 🙁
This is a lose lose scenario for Indian rate payers. Or a win win for utilities. The way the IURC is structured with a pro-utility bent, utilities can charge back to rate payers for any infrastructure needed to handle the extra load and the average Hoosier gets screwed, either through higher rates or increased pollution.
Attract “our own kids” back is an unlikely scenario given the regressive Statehouse super-majority micromanaging local actions; too many with zero expertise but plenty of vitriol. Their motto of “Be Reasonable – do it my way” is not a rational way to govern.
And, bad schools, poor infrastructure, second-rate design, meager air connections and counterproductive conservatism sends many of “our kids” away forever.
Is this true? Biggest manufacturing state?
We should definitely take care of the planet. BUT, The climate hoax should be coming to an end. Still waiting for someone to explain how the glacier that covered Indiana at one time melted with no humans to incite “global warming”.
LOL. IBJ Democrats rolling out their favorite troupe: “But all the young people will move away!!”
LOL. Derek, the only “bad schools” in Indiana are the ones you Democrats force to be there.
“Meager air connections”, yes, like every other mid sized airport in the country, direct flights are limited because of the hub and spoke systems, and we are not a hub, but we do have a very manageable and user friendly airport.
Since Indy is so horrible, why are you here? Please move to Chicago, Detroit, or Newark. You can catch direct flights, their public education is awesome, they have perfect infrastructure, design and low taxes
What is keeping you here?
Don’t understand the appeal of bringing all these data centers here. To me the costs well outweigh any benefits to the State and this is a clear example.