As reported by CNHI Indiana’s Carson Gerber, the surge in data centers has left Indiana utilities scrambling to cover the costs. In some areas of the state, customers are seeing increases in their utility bills and are blaming the costs on the massive new data centers.
At least five such centers are online or under construction, and more than two dozen additional facilities have been proposed. When large companies like Meta, Google and Microsoft show up with a bag of cash and a plan for vacant land, it’s hard for local officials to turn them down. But protections must be put into place to protect residents who shouldn’t have to subsidize billion-dollar businesses.
Gerber reported that by 2030, the data centers being constructed for artificial intelligence in northern Indiana alone will consume more electricity than all the homes in the state combined. How can utility companies possibly keep up with that demand without hiking prices on residential customers?
Utility companies and economic development officials are telling Hoosiers not to worry, but consumer advocates are telling a different story. Some of the contracts between data centers and utility companies are private, and it’s unclear what protections, if any, are being put in place to protect residential customers.
This data center rush comes at a time when Indiana, like many states, is attempting to get away from coal-reliance and trying, very slowly one might add, to provide cleaner energy. It’s hard to imagine that path will be sustainable given the massive amounts of energy these centers consume.
It would be hypocritical to mention these concerns without acknowledging why data centers are in such demand. Our reliance on technology, our addiction to our cell phones and tablets, and the emerging reliance on AI is fueling the data boom. The demand is sky-high, and that means more data centers will be constructed. We’re not going to suddenly quit using technology, but if we got off our phones more frequently it would certainly make a difference, both in terms of data usage and our mental health.
But the biggest responsibility lies with the data companies as well as elected and appointed officials. These companies are already receiving lucrative deals for building in Indiana. Hoosiers should be protected from exorbitant water and energy bills, or the state would be better off without becoming a data center hub.
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