Rep. Alex Burton: As data centers grow, Indiana must lead, not react

As we work in this legislative session, my focus is on advancing responsible, forward-thinking and strategic legislation that puts Hoosiers first. Indiana must strike the right balance between economic development, revenue growth, transparency and the long-term needs of our communities. Our state’s economic interests are not one-size-fits-all. Every region has its own priorities, challenges and vision for the future, and state policy should reflect that reality.

One of the most pressing issues facing communities across Indiana is the rapid interest in data center development. Whether Hoosiers support or oppose these projects, it is clear the Legislature must lead. Without clear guidance from the state, local governments are being forced to make complex decisions on their own. That has resulted in inconsistent processes, confusion and growing concerns from residents who want answers about water use, energy demands and long-term impacts on their communities.

I am working to develop a standardized, statewide framework for evaluating data center projects. That framework must guarantee safe, drinkable water, protect local water supplies and ensure that increased energy demand does not raise monthly utility bills for residential customers. Data centers can use millions of gallons of water and consume as much electricity as small cities, which makes thoughtful oversight essential.

At the federal level, there is currently no comprehensive framework governing data center development. Oversight is limited to broad environmental laws and permitting processes that were never designed to address the scale of water use and energy demand these facilities create. As a result, states across the country are stepping in to fill the gap.

California and Connecticut now require disclosure of water and energy use before projects move forward. Minnesota and Arizona have tightened water permitting for large industrial users, particularly in regions facing supply constraints. Virginia, home to the largest concentration of data centers in the world, is actively debating additional transparency and infrastructure safeguards. Indiana should learn from these efforts and lead with a clear, consistent approach rather than leaving communities to navigate uncertainty on their own.

Hoosiers are paying attention and want their voices heard. That is why transparency must be a cornerstone of this effort. I strongly believe that requiring public hearings once plans are ready to be shared gives communities a seat at the table and ensures concerns are heard and addressed.

Handled correctly, this approach can strengthen Indiana’s economy, protect our resources and position our state as a national leader. We cannot afford to think short term. This is our moment to act responsibly and put Hoosiers first.•

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Burton is a Democrat from Evansville and represents District 77 in the Indiana House of Representatives.