FROM INDIANA PUBLIC BROADCASTING

(photo is a rendering of a proposed data center in Jeffersonville, IN)

A consumer advocacy group is warning that large data centers moving into Indiana could cause higher electric bills for residents. These massive facilities, owned by companies like Google and Meta, run around the clock and require enormous amounts of energy.

According to Indiana Michigan Power (I&M), data centers planned for its service area are expected to use more electricity annually by 2030 than all of the homes it currently serves combined. Ben Inskeep, with the Citizens Action Coalition, says it will be difficult for utilities to meet this energy demand using only renewable sources. As a result, utilities may rely on coal or build new natural gas plants, delaying the state’s shift toward cleaner energy like wind and solar.

I&M has proposed a tariff that would require data centers to sign long-term contracts for power. Inskeep says this could give utilities assurance that the data centers will remain long-term customers.

“And so that would give them some reassurance that the data center is not going to go away in ten years if I&M builds out, you know, equipment, facilities, infrastructure that are going to last 50 years,” Inskeep said.

This could help protect Indiana residents from decades of higher electric bills. The Citizens Action Coalition is urging lawmakers to pause the development of new data centers until policies are in place to safeguard consumers. The Indiana Energy Association has not yet commented on the issue.