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Indiana candidates split over data center growth, utility costs and local control

As Indiana communities push back against large data center projects, candidates are debating who should decide where they go and who pays for their power and water. A poll found 69% of likely voters oppose new facilities, while energy costs ranked as a concern for 90% of respondents.

Indiana candidates split over data center growth, utility costs and local control

With Indiana’s Nov. 3 election approaching, data center development has become a campaign issue as residents challenge projects over their demands on land, water and electricity. Candidates across the state have called for everything from a statewide pause to more local control and tighter rules on costs and transparency.

More than half of Indiana counties have adopted some form of restriction, including zoning rules, temporary moratoriums or bans, according to the Indiana University Environmental Resilience Institute. The facilities house servers used for cloud computing, streaming and artificial intelligence, and can consume large amounts of electricity and water.

A Free Press Indiana poll found that 69% of likely voters oppose construction of new data centers in Indiana, although 5% named AI and data centers as their top concern. Government corruption and inflation ranked higher, at 24% and 20%, respectively. The poll, conducted by Bellwether Research, surveyed 896 registered voters from Oct. 8 to 11 and has a margin of sampling error of plus or minus 3.4 percentage points. The same survey found 90% were concerned about rising energy costs.

Therese Dorau of the IU institute said the debate has brought new people into local politics. Residents with different political views, she said, are finding common ground in wanting more say over development and community regulations.

State policy is also in focus. A 2019 Indiana law created substantial tax breaks for data center developers, with some exemptions lasting up to 50 years. Democratic House challengers Brenna Geswein, in District 13, and David Boyd, in District 90, called for a statewide moratorium in their candidate survey responses.

In District 90, Republican incumbent Andrew Ireland said data centers can bring investment and strengthen technology infrastructure, but argued against tax breaks without limits. In District 25, Republican Rep. Becky Cash said constituents do not want projects imposed on their communities. She called for transparency, public input and a review of tax policies, and said developers should demonstrate adequate water supplies and ensure electricity costs are not shifted onto residents.

Cash’s district includes parts of Hamilton and Boone counties, near the Lebanon LEAP Innovation District, where Meta is developing a $10 billion data center project. Democratic challenger Tiffany Stoner said development could bring jobs and investment, but should not come at the expense of local communities. She also opposed the use of secrecy agreements.

The issue is prominent in congressional contests, too. In the 5th District, which includes Hamilton County and cities including Anderson, Kokomo, Marion and Muncie, Democratic candidate and state Sen. J.D. Ford has called for transparency, regulation and a local role in decisions. Ford linked the facilities’ electricity use to high utility rates.

Republican incumbent Victoria Spartz said new data centers should not be added to the grid without additional power generation, warning that doing so could raise costs and risk blackouts. In September, she asked federal officials for an independent review of Indiana data centers, including the LEAP District, citing concerns about resource use and costs. She said operators should pay their way and explain the value they provide.

In Indianapolis’ 7th District, Democratic Rep. André Carson said data centers must not drain community resources or drive up utility bills without limits. Carson joined Sen. Bernie Sanders and Rep. Alexandria Ocasio-Cortez in introducing federal legislation that would pause data center development until safeguards are established. Republican challenger Patrick McAuley and Libertarian challenger James Sceniak have also emphasized protecting local neighborhoods.

County commissioners can directly shape proposals through local approvals, and candidates for those offices are on ballots across Indiana. The debate has also surfaced in races for offices with no direct authority over data center projects, reflecting how concerns about power bills, water and community control have spread beyond the places where facilities are proposed.

Early voting is underway. Election Day is Tuesday, Nov. 3.

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