Indiana is experiencing a boom of data centers. Right now, there are more than 70 in operation across the state with dozens more being proposed. However, this fast-growing surge is raising concerns among farmers and rural communities about what this could mean for their land, water, and their way of life.
“It’s a real issue, but it can be a big economic benefit if we get it right,” said Indiana Gov. Mike Braun.
Many Hoosiers say they’re concerned about the amount of electricity these data centers use—which could drive up the electric bills for those living nearby.
Braun recently told Hoosier Ag Today that he wants the major corporations putting up these data centers to pay for the upgrades necessary to the nearby power grid.
“Data centers are only going to work if the hyperscalers pay for every penny of it,” said Braun. “The companies that want them are the richest in the country. Whether they’re in front of the meter or behind it, [their electrical usage] cannot impact current families and businesses.”
Many Indiana farmers are also concerned about the amount of water that these data centers use in order to cool their computer hardware and equipment—and that it may significantly drain the water table, which could dry out crops in the fields more quickly.
But, Braun said any new data centers that go up must also have the infrastructure to recycle the water they need to operate.
“That eliminated probably a bigger issue—that we don’t have water evenly across the state,” said Braun. “We’re a state that’s blessed with more of it than most other places. But, we really don’t have much to spare. Over time, water is going to be recycled, [so it’s] not a constant stream of using it to cool things.”
Even though Braun said the economic impact for the state is substantial, he added that the decision to allow further data centers to be built should ultimately be left to those living and serving in those communities.
“I think you’re going to see that the real pros and cons will be fleshed out, and it will be right for some places and not for others,” said Braun. “But, that should be up to individual counties to see what makes sense for them.
“[Data centers are] driving a lot of the economic growth across the country, and it is associated with AI. If we don’t stay ahead of China on it, I think we’ll regret that in a broader more strategic way,” he said.
Indiana ranks third in the Midwest behind Illinois and Ohio for data centers.
Last October, Amazon opened an $11 billion AI data center near New Carlisle in St. Joseph County. That facility occupies 1,200 acres that was farmland just a few years ago. Now, it is one of the largest operational AI data centers in the world. Amazon is now planning to build a $15 billion data center in the town of Hobart in Lake County according to the Times of Northwest Indiana.
As Indiana weighs the promise of billions in investment against the pressures on its farmland and natural resources, the path forward appears far from settled. For now, state leaders are betting that with stricter safeguards and local control, communities can strike a balance—but for many Hoosiers, the question remains whether the rapid rise of data centers will ultimately power prosperity or come at too high a cost to the land and livelihoods that have long defined the state.
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