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Indiana has earned its reputation as the “Crossroads of America” not just because of its strategic location but also because leaders at the state and local levels have embraced industries that move the state and nation forward — from agriculture to manufacturing, energy to technology, and more.
Recently, the state has found itself at a different kind of crossroads: deciding how best to continue welcoming significant data center investment — which strengthens local economies; creates high-wage jobs; provides significant tax revenue for community priorities like tax relief, public safety and transportation; and helps make life more affordable for residents. Data center investment also gives the state the opportunity to become one of the most critical corridors of economic growth in the nation.
Today, nearly every aspect of our day-to-day lives depends on access to data. The average American household has 21 connected devices, with everything from daily videoconferencing calls, e-commerce, telehealth appointments and online learning supported by the digital infrastructure that data centers provide.
While there is currently a lot of focus on data centers that host AI workloads, most data centers operational today support cloud services and other workloads that businesses of all sizes across every sector depend on every day. These include payroll systems, customer support, logistics, precision agriculture and advanced manufacturing across Indiana.
Data centers are committed to paying their own way for the power they use, and data centers are working with local utilities to ensure efficient and cost-effective planning to maintain the stability of local grid infrastructure. And a recent study from the Lawrence Berkeley National Laboratory found that many states that witnessed new load growth from large electricity users like data centers actually saw wholesale electricity prices decrease from 2019 to 2024.
In fact, Indiana is already beginning to see the positive benefits that data centers can bring to both the state’s grid and to Hoosiers’ wallets. Earlier this year, Indiana Michigan Power announced it will be reducing base rates for customers, made possible by the load growth and increased revenue the company is now receiving from large-load customers, including data centers.
When data centers make investments in Indiana, they’re committing to the communities where they operate for the long haul. This means consistent, high-paying jobs — many of which don’t require a traditional four-year degree. These jobs are supported not only during the construction phase but also for years to come, with skilled tradespeople like electricians, plumbers, pipefitters, steamfitters and HVAC technicians helping to maintain and service each building’s operations.
Data centers are also contributing more to Indiana’s economy each year, with a recent economic impact study finding that in 2023, the data center industry contributed $3.45 billion to Indiana’s gross domestic product, a 16% increase from the year before. Targeted, strategic incentives at the state and local levels also help unlock billions in private capital investment from data centers — injecting new, long-term revenue into the balance sheets for state and local governments to fund critical government programs.
In LaPorte, which has become a growing technology hub, data center companies are already making significant investments in the community — including in local schools, which will help promote student achievement, innovation and long-term growth.
Modern data centers are also on the cutting edge when it comes to efficient use of water resources, with many implementing highly efficient new technologies like closed-loop systems, dry cooling and recycled wastewater. As Indiana House Speaker Todd Huston recently pointed out, less than 10% of water used by data centers turns into steam, with the vast majority recycled on-site or responsibly discharged, ensuring Indiana can continue its leadership in water resource stewardship.
Here’s the larger picture. By 2030, it is estimated that $3 trillion will be invested worldwide to meet the anticipated demand for digital infrastructure by individuals, businesses, government and organizations of all sizes. Given the economic benefits at stake, Indiana has a once-in-a-lifetime opportunity to continue cultivating a competitive regulatory environment that embraces data center investments while also offering predictability and stability for other 21st-century industries.
We are encouraged that state lawmakers have worked collaboratively with the data center industry, local government leaders and all industry stakeholders in Indiana to ensure the Hoosier state continues to stay competitive, attract job-creating investment, and play a leading role in America’s data dominance.•
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Levi is president of the Data Center Coalition, the national trade association for the data center industry. Dermody is the mayor of LaPorte.
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Only if they pay 100% of the cost to enhance water and power infrastructure to avoid any increase for homeowners. And severely restrict tax incentives. After initial construction, these operations being VERY few jobs, most of which are mediocre salaries.