Local officials would assess data center sites before issuing permits

Local permit offices would require applicants to disclose expected power and water use and assess possible site effects before issuing a construction permit. This covers Indiana data centers that mainly handle digital data and house equipment handling at least one megawatt of power. Estimates must reflect full operating capacity. The review covers local water use, the power grid, carbon emissions, and agricultural, historic, and cultural resources. These permit rules would take effect July 1, 2026, if enacted.

Operators would report each data center’s electricity use for the prior quarter, broken down by power source, to the state utility commission every quarter. This covers Indiana data centers that mainly handle digital data and house equipment handling at least one megawatt of power. The commission would post combined summaries online without identifying individual data centers. These reporting rules would take effect July 1, 2026, if enacted.

Indiana’s utility commission would form a working group to estimate the state’s future data center electricity needs. The group would study future electricity needs for data centers across Indiana. The group would send lawmakers its findings and any recommended state actions. This section would take effect upon passage. The report is due by October 31, 2026, and the section expires January 1, 2027.