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As a subscriber you can listen to articles at work, in the car, or while you work out. Subscribe NowFeatured Issue: “Should more Indiana communities institute moratoriums on data center projects?”
Should more Indiana communities institute moratoriums on data center projects? The short answer is no. Indiana does not need a wave of blanket moratoriums on data centers. We need a more transparent and rigorous process that addresses residents’ concerns, promotes innovative design and includes local government voices.
I opposed the recent data center proposal in Franklin Township, but not because I believe data centers are inherently bad. As a city-county councilor and longtime technology professional, I know these facilities are critical infrastructure for cloud services, AI, backup and disaster recovery. The problem in Franklin Township was not the idea of a data center. It was the location, the unanswered questions and the lack of transparency.
Communities that are asking for moratoriums are not anti-growth. Rather, they are responding to valid concerns regarding water usage, power-grid strain and being sidelined as out-of-state companies negotiate what happens in their backyards. To make matters worse, asking councilors and other officials to sign NDAs does not build public trust. When residents feel like their community is being treated as an experiment, a moratorium can look like the only leverage.
That is a sign our process is failing our communities.
Rather than hitting the proverbial pause button, Indiana should set clear, statewide guardrails for data center development to safeguard residents and ensure an efficient process.
First, we need honest resource planning. Before a large data center is approved, developers and utility companies should have to prove how they will supply power without risking brownouts or shifting costs onto existing ratepayers. When it comes to water usage, projects should be sited where there is a sustainable source, such as major surface waters, and where withdrawals and heat can be managed without long-term harm.
Second, we should encourage more innovative design. Around the world, companies are experimenting with placing data centers underground and reusing waste heat to warm nearby homes and businesses. In Indianapolis, Citizens Energy has heated downtown buildings with district steam for more than a century. These innovative energy designs show that if we implement planning mechanisms, data center byproducts can be an asset rather than a liability.
Third, local governments need a seat at the table and support. The largest incentive packages, including tax abatements, were pre-negotiated at the state level while cities and counties are left to manage roads, utilities, public safety and land use. If the state wants communities to host resource-intensive campuses, some of the upside should flow back to those communities in the form of funding for infrastructure, services and schools.
Indiana can and should be a leader in the technological era. Our state can be pro-tech and pro-community without moratoriums. We need higher standards, better coordination and deals that work for residents as well as for data center operators.•
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Hart, a Republican, is a member of the Indianapolis City-County Council and founder of SmartIndy. Send comments to [email protected].
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