Home / The Issues: Data Centers
Data centers are changing the way the world uses energy.
Data centers are large warehouses that operate infrastructure to support computing and particularly generative AI. They typically contain a significant number of servers, storage systems, and other IT equipment. This equipment takes a substantial amount of power to run, so the data center will often connect directly to an electric substation which they can use to supply power for their operations. The IT equipment in the data center also produces substantial heat. To maintain operations at a safe temperature, the data center will implement a cooling approach, which could require a massive amount of water on a daily basis.
While data centers have been part of the US economy for many years, their scale and scope are increasing rapidly.
Data centers are both getting larger and increasing in number, making a greater impact on our energy system and water resources as they grow. Our goal is to minimize the negative environmental and human impact of data centers.
Our Position
As society trends more toward technology supported cloud computing and artificial intelligence, we must think clearly and plan thoughtfully to minimize the harmful environmental and community impacts of data center expansion. For example, steps can be taken to minimize new polluting fossil fuel power generation, protect our water resources, and protect Hoosiers from the rising cost of electricity that has accompanied data center expansion.
This website gives information that advocates and elected officials can use as they seek answers to critical questions related to energy, water, land use and local community impact. In all cases transparency and informed stakeholders can lead to better decisions related to new data center development.
The Issue
Indiana is quickly becoming a hub for data centers. According to DataCenterMap.com, the Hoosier state was home to 71 data centers by September of 2025 – an increase of nearly 30% from just 6 months prior. The Indiana government and many local governments are offering tax incentives to attract additional data centers to the state.
While a 30 GW data center may have been large a decade ago, a 200 GW data center is common today. Data centers can get as large as 2-3 GW, which could power up to 900,000 homes.
Lawrence Berkeley National Laboratory estimates that data centers will use between 6-12% of the world’s total electricity by 2030.
Left unchecked, the immense increase in electricity resulting from data centers could lead to higher utility rates and climate pollution, and worse air quality.
Data centers in Indiana increased
30%
between March and September 2025
Some data centers are projected to use over
2 GW
of power from the electric grid
Many data centers use the same amount of water as a town of
50,000
people
Facing a data center project proposal in your community?
Data Center Resource Guide
Our free resource guide is designed to help you understand the trade-offs of data centers and provides questions to ask before your community approves a data center project.
HEC Data Center Guide
Energy
Data centers consume massive amounts of energy – often in quantities hard for the average Hoosier to imagine. For example, it has been widely reported that Amazon’s data center project in Northwest Indiana will require 2.25 gigawatts (2,250 MW) of electricity, a demand comparable to half the households in the state and ten times greater than demand from other large industrial facilities in the region, such as steel plants.
Thoughtful planning for electric grid expansion and new power generation is essential to policymakers’ ability to assess competing demands from developers and residents.
Water
Data centers can be huge water users consuming about the same amount as a town populated by 10,000-50,000 people. This level of consumption can contribute to water scarcity and impacts on water ecosystems. Whenever possible communities should avoid additional ground water withdrawals to support data centers. Thoughtful planning to protect community water supply and water resources will help protect water and minimize environmental impacts.
Land Use
Data centers are essentially colossal warehouses filled with computer processing equipment. New hyper scale data center campuses can take up several hundred acres of land. Data center developers often have plans to continue to expand the size of their data centers after their initial project is built. Site selection that protects communities and the environment is critical.
Community Impact
Data centers are massive facilities that impact traffic, noise, light, and air quality of surrounding communities. Data centers provide few long-term jobs beyond the original construction phase. When data centers are incentivized through local property tax breaks the financial benefit for communities are lessened. These questions will help evaluate whether the community benefits of the proposed data center outweigh the costs.
Take Action
How to Make a Difference
Attend a webinar or educational event.
Learn more about data centers and receive updates from experts via HEC’s webinars or events from us or our community partners.
Write a Letter to the Editor
Sending a letter to the editor of your local newspaper is a powerful advocacy tool because it reaches a large audience, can touch on information not brought up in a news article, shows your support or opposition of an issue, and can start a conversation. Make sure you check out and follow your paper’s guidelines before submitting – there may be a length restriction. If you’re looking for a topic to cover or had a letter published in your local paper, let us know!
Participate in a local meeting.
Use our guides to ask thoughtful questions of the project’s developers at local community meetings, zoning board meetings, or city council hearings.
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