Research forecasts that the global power demand from data centers will increase 50% by 2027 and by as much as 165% by the end of the decade.

Due to the large number of data centers that are already proposed across Northern Indiana, it is projected that these facilities alone will use more electricity by 2030 than all 6.8 million Hoosiers use in their homes today. 

Region residents pay the highest electric rates in the state, with a recent increase of $50, or 26.7% per month in just one year, compounding a 17.8% hike in 2024, on an average NIPSCO bill.

The proposed utility spinoff, NIPSCO GenCo, which is pending before the Indiana Utility Regulatory Commission and has drawn objections from the LaPorte County Commissioners, would be exempt from regulatory oversight on new power generation for data centers. This exemption would also allow GenCo to negotiate rates directly with companies, potentially undermining necessary protections for ratepayers.

Data centers consume millions of gallons of water and massive amounts of energy daily. They can create extreme disturbances through air, water, noise, and light pollution, as well as agricultural impacts, and are largely self-regulated. 

Backup generators used at these facilities, like diesel backups, emit particulate matter, increasing the risk of respiratory and cardiovascular diseases, cancer, and neurological disorders. 

The Boston University School of Public Health estimates that “at only 65 decibels, about as loud as a car going by for someone standing on the side of the road, research has shown that people begin experiencing increased risk of hypertension and heart attack.”

NIPSCO projects at least 2,600-megawatts (MW) of new data center demand by 2028, rising to 8,600 MW by 2035.

NIPSCO is currently conducting a study to evaluate the feasibility of converting the Michigan City Generating Station (MCGS) coal-burning plant, scheduled for full decommission by 2028, to gas or other energy technologies.

Due to the growth of data centers across Northern Indiana, NIPSCO may keep the MCGS open, contributing to continued exposure to health-harming and climate-harming emissions. 

Data centers rely on water-intensive cooling systems that consume millions of gallons of potable (drinking) water annually. 

According to research, a single data center can consume up to 5 million gallons of drinking water per day, enough to supply thousands of households or farms.

Not only are data centers consuming large quantities of drinking water, but they are also removing it from the local water cycle. The water used is often treated with chemicals to prevent corrosion and bacterial growth, rendering it unsuitable for human consumption or agricultural use.

In 2019, the Indiana General Assembly enacted House Bill 1405, the Indiana Data Center Tax Incentive Act, which provides large data centers with a full sales tax exemption for up to 50 years, while also allowing local governments to enact property tax exemptions. 

In 2025, Indiana passed House Bill 1601, “Quantum Research Tax Incentives,” which exempts the sale of qualified data center equipment, quantum computing research tools, advanced computing devices, and defense infrastructure equipment from sales tax that meet specific qualifying criteria.

These subsidies are expected to total in the tens of billions of dollars in lost tax revenue for the State of Indiana over the coming decades. 

Data centers house server farms that store our information, along with electrical equipment that gets hot, requiring 24/7 air cooling that annually uses millions of gallons of water as a refrigerant.

The average server utilization rate hovers between 12%-18% of capacity, while an estimated 10 million servers sit completely idle, equaling $30 billion in wasted capital.

Even active services rarely exceed 50% utilization, as the majority of our existing compute infrastructure is essentially burning energy without doing anything productive.

E-waste is another serious waste issue. Servers and graphic processing units, essential to data center operations, are typically replaced every 2–5 years, producing millions of tons of outdated equipment, more than 80% of which is discarded, leading to 1.2-5 million tons more of e-waste.