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Indiana data center projects face less federal wetlands oversight after court ruling
Five Indiana data center developments with wetlands or other surface waters did not need federal water permits after a 2023 Supreme Court decision narrowed Clean Water Act protections. The shift leaves state regulators in charge, as Indiana’s own wetland rules have also been scaled back.
Five data center developments in Indiana avoided federal water permits for wetlands, streams or ponds on their sites after a 2023 U.S. Supreme Court ruling narrowed the reach of the Clean Water Act, leaving the Indiana Department of Environmental Management as the sole regulator of water impacts at those locations.
The ruling removed federal protection from an estimated half of the nation’s surface waters. Before the decision, water features at the five Indiana sites would have been subject to federal review, according to an analysis cited in reporting published Oct. 12, 2026.
Federal permits require review by the U.S. Army Corps of Engineers and offer opportunities for public comments and hearings. The process can also result in a permit being denied. David Van Gilder, senior policy and legal director at the Hoosier Environmental Council, said developers face fewer hurdles under state oversight, where permits are almost certain to be granted.
The difference is visible in two large projects. Amazon’s 1,200-acre Project Rainer campus in New Carlisle includes federally regulated wetlands and streams. Amazon initially sought permission to fill nearly 10 acres of wetlands. After the Army Corps asked for a plan with less impact, the company proposed filling about 5 acres and creating roughly 10 acres of replacement wetlands on the site. The federal permit remains under review.
At Google’s nearly 900-acre Project Zodiac campus in Fort Wayne, an inspection found no federally regulated waterways in the first two construction phases. IDEM identified nearly 12 acres of wetlands in the project area; 2.4 acres under state jurisdiction would be affected, while another 2 acres were deemed exempt and could be filled without a permit. The state required Google to buy mitigation credits intended to restore about 4 acres of wetlands elsewhere in Indiana.
That mitigation program is facing questions of its own. The Army Corps found Indiana’s state-run program out of compliance in July because it was not restoring wetlands within the federally required three-year period. Developers have paid at least $109 million into the program, which has completed two restoration projects. Indiana Department of Natural Resources official Mark Becker has cited regulatory hurdles and lengthy reviews for the backlog and said the agency is developing 27 projects at different stages.
Indiana’s protections were further reduced in 2024, when House Enrolled Act 1383 removed some wetlands from state oversight and loosened rules for others. Kim Ferraro, managing attorney at Bloomington’s Conservation Law Center, said the changes left very few wetlands protected by either state or federal law. Wetlands help filter water, provide wildlife habitat, hold floodwaters and sustain surface water during dry periods, making the gap in oversight consequential for communities as development expands.