Rep. Todd Huston: Data centers are powering today’s modern economy

Featured Issue: “Should more Indiana communities institute moratoriums on data center projects?”

Indiana has positioned itself well in recent years. Our state economy is growing at a faster rate than that of our neighboring states. A recent Moody’s Analytics report ranks Indiana among only 15 states experiencing economic expansion, putting us in the top third nationally for growth. Indiana also ranked seventh in the country for attracting new residents, and several of our communities are nationally recognized as top places to live.

This positive momentum is not by accident. We’ve spent years advancing strong fiscal governance, lowering the tax and regulatory burden on families and businesses, and embracing opportunities for growth. It is more important than ever for Indiana to maintain its commitment to these pillars of growth, especially in a changing and challenging economy.

Data centers are one of the main sectors where there is current economic opportunity. We’re competing for these projects not just with other cities and states but with countries across the globe. That’s because data centers are the digital infrastructure powering today’s modern economy, as critical to our economic success as roads, rail and other infrastructure we have long recognized as essential. They also provide a huge economic development boost in areas where they locate, creating jobs and attracting other industries and companies that need access to this infrastructure.

Communities need to be thoughtful and do their own due diligence on any economic development project, but they must understand that they are the beneficiaries of economic growth. Blanket moratoriums only signal to industry at large that a community is not open for business.

We’ve seen communities reject proposed developments when they believe it’s not in their best interest. We’ve also seen tremendous benefits come to communities that choose to embrace these projects, including hundreds of jobs, significant private investment and new revenue that strengthens their capacity to reinvest and grow. New assessed value coming into a community is also the best way to lower property taxes for Hoosiers, broadening the tax base to drive down rates.

And let me be clear: Indiana is ready to meet the energy needs of today’s modern economy while prioritizing affordability for everyday Hoosiers.

We have worked diligently in Indiana to create one of the best regulatory environments in our nation for power creation and distribution. However, high federal regulatory costs over the last two decades, along with inflation, have led to nationwide rate increases. Indiana is no exception, and Hoosiers are feeling it. Contrary to the narrative that large power users are to blame for rate increases, these types of projects will help modernize our energy grid and lower energy costs for Hoosiers long term. Economic growth spreads out utility infrastructure costs that would normally be shouldered by residential ratepayers.

House Republicans championed legislation last session to ensure residential ratepayers are not on the hook financially for large, energy-intensive projects. We’ve already seen some of the largest projects exceeding these requirements as they look to bring more business and opportunity to Indiana.

Our local governments are key partners in economic development, and I urge communities to approach these decisions with an innovative, forward-looking mindset. Embracing economic growth will keep Indiana on its forward path and ensure opportunity for generations to come.•

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House Speaker Todd Huston (R-Fishers) represents House District 37, which includes portions of Hamilton County and Fishers. Send comments to [email protected].

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