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Over half of Indiana counties now restrict data centers

The image shows members of the Marion County Metropolitan Development Commission in Indianapolis on Aug. 19, 2026.
Zak Cassel
/
WFYI
Members of the Marion County Development Commission at a meeting in Indianapolis on Wednesday, Aug. 19, 2026. At the meeting, commissioners approved a temporary county ban on new data centers, but three projects they previously approved are exempt.

The number of Indiana communities pausing or outright banning data center development has grown. About thirty communities had enacted some form of ban in July. Now, that number has increased to at least 50 counties — or over half — across the state.

That’s according to the Indiana University Environmental Resilience Institute, which tracks the local regulations. The collected data shows 32 counties have passed moratoriums, 14 regulatory ordinances, and in four communities data centers are not permitted. At least one county — Marshall — has made that ban permanent.

“What we’re seeing that’s new but not really surprising since July is an increased number of moratoria, and also several of those moratoria becoming permanent decisions, whether that is a ban on data center development or an ordinance like an updated zoning code or other local policy,” said Therese Dorau, Assistant Director for Climate Policy and Implementation at the Institute.

Some counties approved a limited time for temporary bans. The six-month moratorium for DeKalb expired earlier this month.

Data centers are large facilities that house the computer servers behind cloud computing, streaming services and artificial intelligence. Because those servers run constantly and generate significant heat, the facilities can draw enormous amounts of electricity and water.

Indiana lawmakers created policies to lure large data center developers to the state, including laws that enable tax breaks and other incentives. That has attracted large technology companies like Google, Amazon and Meta.

These developments have drawn opposition in communities around Indiana and across the U.S. due to concerns about electricity, water and land. Critics have also questioned environmental impacts like noise and air pollution, as well as whether the economic benefits such as long-term jobs will actually benefit local communities.

Some data projects are making moves to connect to the electrical grid. Earlier this month, the Indiana Utility Regulatory Commission approved a $737.3 million plan by Central Indiana utility AES Indiana to power a 390-megawatt Google data center project in Monrovia. The companies said Google will cover 100% of the costs, but critics are concerned that $74 million in transmission upgrades will be passed to customers.

The IU institute created an updated resource with information about what science and research says about some of these topics.

Depending on what local officials decided, the length of the temporary moratorium varies. Marion County passed a moratorium in August, which created a data center research committee to study the topic and propose zoning regulations. It lasts through the end of 2027. Steuben County’s, which passed the most recent policy on Sept. 15, lasts only six months.

“In my opinion, a responsible use of a moratorium is to take a pause. It’s not to make a permanent decision, but really, it’s a way to say we’re going to put a timeframe on which our government is going to do more in-depth research about what is right for our community,” Dorau said.

Starke County approved a ban on data centers on Monday, Oct. 19.

Contact WFYI data journalist Zak Cassel at zcassel@wfyi.org

Zak Cassel is a data journalist at WFYI, examining inequity in health, education and beyond. He comes most recently from a fellowship at Columbia Journalism Investigations.