Community benefits, not moratoriums, should guide Indiana’s debate on data centers

As more Hoosier communities debate data centers, a growing number of local governments are reaching for moratoriums. Nearly a third of Indiana counties have adopted data center restrictions, with Indianapolis now considering a temporary halt of its own. Concerns about water, power, taxes, infrastructure and transparency deserve serious answers.

But moratoriums can have unintended, far-reaching effects on a community. It is a public signal to employers, investors and site selectors that a community may be closed for business.

Companies compare communities to determine the best area for their investments. A blanket moratorium tells responsible developers the same thing it tells irresponsible ones: do not bring us a proposal. Once a community earns a reputation for shutting the door before a conversation begins, that reputation will likely extend beyond one industry.

I am not here to advocate for every data center project. Not every project belongs in every community, and not every developer deserves public support. As in any industry, there are good developers and bad developers. Local leaders should distinguish between them and negotiate for tangible value – not treat every proposal as though it were the same.

Indiana already has examples of this responsible approach. In LaPorte, Microsoft has agreed to pay its property taxes in full, with 15% of the resulting revenue allocated to local schools for 20 years. In Hobart, Amazon has committed to funding the water and sewer infrastructure needed for its operations. Amazon has also agreed with NIPSCO to cover the costs of new electric infrastructure required to serve the project.

The developers worth welcoming are those prepared to minimize water use through closed-loop cooling, air-cooled chillers and other modern technologies; pay for the grid, road, water and sewer improvements their projects require; and put Indiana’s skilled construction workforce to work.

For Indiana’s building trades unions, that last commitment matters. Data centers can provide years of work for electricians, pipefitters, operating engineers, laborers and many other crafts. When Hoosier communities host major investments, Hoosier workers and families should share in the benefit.

Indiana has spent decades building a reputation as a place that makes things, builds things and welcomes investment. We should not weaken that reputation by telling an entire industry to stop at the county line.

Communities should walk away from bad deals and hold bad developers accountable. But keep the door open to companies willing to conserve resources, pay their own way, invest locally and hire Hoosiers. The answer is to negotiate those benefits – not announce that Indiana is closed for business.