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Construction has been a bright spot in Indiana’s economy, underpinned by our state’s unparalleled skilled tradespeople. However, when it comes to the infrastructure needs of the tech sector, some have decided those projects and jobs are dispensable. That thinking needs to change.
Indiana has rightly celebrated recent investments and construction announcements across the state. These include high-rise apartment complexes and agribusiness expansion in the Indianapolis region, John Deere’s new distribution facility in Hebron and Stellantis’ new production at its Kokomo plant. There should be just as much excitement when workers break ground on a new data center project, so why isn’t there?
One argument that has taken hold in recent months is that data centers somehow don’t support “enough” good jobs. As the business manager for IBEW Local 481, I can tell you that certainly isn’t the view shared by our skilled tradespeople here in Indianapolis. These projects support thousands of family-sustaining construction jobs in addition to permanent high-paying positions and jobs created by required maintenance and supply-chain needs associated with these facilities. Additionally, the technologies powered by these operations are leveraged by other critical employers, from hospitals and pharmaceutical manufacturers to financial services, and transportation and logistics.
That doesn’t mean there aren’t issues that need to be worked through. Hoosiers are right to ask questions about how any large industrial investment will impact their families. Electricity costs have been front and center when it comes to the expansion of data centers across Indiana — understandably so. But there are other factors contributing to rising energy demand, from widespread electrification to onshoring and expanding U.S. manufacturing. Laying all of our energy problems at the feet of data-center buildout glosses over the underlying challenges that need to be addressed, from getting more resources connected to the grid to improving long-term demand forecasts.
Fortunately, steps are being taken to steady our state’s energy footing and pave the way for strategic economic development. Last year, regulators approved rules for connecting large-load customers — such as data centers — to the grid, ensuring that the companies themselves pay for energy upgrades and don’t pass the costs on to consumers. Indiana was also an early adopter of legislation to spur investment in advanced transmission technologies, which can help extract more power out of existing grid infrastructure.
Some companies are also pursuing efforts to tackle local workforce and infrastructure challenges. Google, for instance, has invested heavily in electrical apprenticeship programs, including the Electrical Training Institute of Indianapolis, a joint training center run by the IBEW and the National Electrical Contractors Association. The company has also funded water and sewer infrastructure upgrades associated with its data center project in Fort Wayne.
Indiana is a state of builders, and we should welcome projects that help put food on the table of our skilled tradespeople and their families. Data center projects are no different. We should be looking for ways to pave the way for these investments and work through legitimate concerns instead of throwing up roadblocks and sending these jobs to neighboring states.•
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Wheeler is the business manager for IBEW Local 481 in Indianapolis.
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