IN — State Policy Updated 2026-07-17

Indiana

1) Incentive programs

  • State sales and use tax exemption for qualified data centers: Indiana provides a sales/use tax exemption for qualifying data center equipment and energy through IEDC data center sales tax exemption certificates. Statutory minimum-investment thresholds vary by county population; the exemption term is generally 25 years, with up to 50 years available for projects above the larger-investment threshold (Indiana Code 6-2.5-15-10, 2024; Indiana Code 6-2.5-15-14, 2024; Indiana Code 6-2.5-15-16, 2024; IEDC, accessed 2026-07-17).
  • Energy, equipment, and local personal-property coverage: IEDC describes the state program as covering eligible data center equipment and energy consumed by a qualified data center. Indiana also permits a local-option personal property tax exemption for qualified enterprise information technology equipment tied to at least $25 million in investment (IEDC, accessed 2026-07-17; Indiana Code 6-1.1-10-44, 2024).
  • HEA 1210 local-share requirement (effective July 1, 2026): For a qualified data center whose local permit and transaction certificate are issued after June 30, 2026, HEA 1210 authorizes the host county or municipality to require a quarterly payment of no more than 1% of the state sales/use tax not paid on the center’s electricity bill. The locality controls use of the money, and the Department of Revenue must report the amount to it on request (Indiana Department of Revenue, 2026-04-01).
  • Local property tax abatements remain available: Indiana local governments may use Economic Revitalization Areas and property tax abatements; local bodies weigh investment, job creation, wages, and other project effects under the general abatement statute (Indiana Code 6-1.1-12.1-17, 2024).
  • No repeal or broad reduction of the state exemption in 2026: Of the targeted data-center measures reviewed for the 2026 session, only the narrow HEA 1210 local-share provision became law; proposals to condition incentives on labor standards or address broader tax, water, and ratepayer costs did not pass (WFYI, 2026-03-02; Indiana General Assembly, accessed 2026-07-17).

2) Restrictions and moratoriums

3) Local governance and major decisions

  • Zoning authority remains primarily local: Indiana’s planning and zoning framework authorizes local plan commissions and legislative bodies to adopt zoning ordinances and special-use procedures (Indiana Code 36-7-4, 2024).
  • Indianapolis citywide standards advanced, but were not final: On July 1, the Metropolitan Development Commission voted 5-3 to recommend data-center zoning standards to the City-County Council. The proposal includes a 65 dBA round-the-clock noise cap, a 400-foot residential buffer, and public annual reporting; as of July 17 the council still had to act (Indianapolis Metropolitan Development Commission packet, 2026-07-01; Axios Indianapolis, 2026-07-01).
  • Indianapolis moratorium separately advanced, but was not enacted: A council committee voted 10-3 on July 13 to recommend pausing new data-center approvals through December 31, 2027 and creating a data-center-specific zoning class. The full council vote was scheduled for August 10, followed by further MDC review, so no citywide moratorium was in effect at the cutoff date (WFYI, 2026-07-13).
  • Sabey / Decatur Township, Indianapolis: The MDC approved Sabey’s $4 billion plan on March 18. Residents subsequently sued to block the approval, alleging the variance route bypassed a full council vote and raising noise, energy, water, jobs, and property-value concerns; the project remained contested at the cutoff (WFYI, 2026-03-18; WFYI, 2026-04-20).
  • Metrobloks / Martindale-Brightwood, Indianapolis: The City-County Council approved rezoning on May 4; residents and the Hoosier Environmental Council then challenged the decision in court, alleging environmental racism (WFYI, 2026-05-04; WFYI, 2026-05-12).
  • DC BLOX / Warren Township, Indianapolis: On July 15, the MDC voted 6-1 to approve a reduced two-building version of the roughly $2 billion campus, with fewer backup generators than the original proposal, despite neighborhood opposition (WFYI, 2026-07-15).
  • American Tower / Pike Township, Indianapolis: American Tower withdrew a rezoning petition for a proposed 4 MW, 20,000-square-foot edge facility after organized opposition and a petition signed by more than 1,200 people; the company described the February action as a pause rather than a permanent cancellation (Data Center Dynamics, 2026-02-03).
  • Washington / Outrigger: On May 11, Washington’s city council unanimously ended negotiations with Outrigger Energy over a proposed data center that could have demanded up to one million gallons of water per day at peak, and directed the city attorney to explore a moratorium (Indiana Public Media, 2026-05-12).
  • Bristol Innovation Park / Elkhart County: After a five-hour hearing, the Elkhart County Plan Commission recommended denial of a rezoning request on July 9 amid opposition over water, power, noise, traffic, and property impacts. A prior PUD already permitted a data center, and the Bristol Town Council’s final action was pending for August 20 (InkFreeNews, 2026-07-12).
  • Jefferson Proving Ground / Jefferson County: A privately owned portion of the former proving ground received industrial-use approval for an approximately 550-acre, 7.1-million-square-foot campus. The unnamed developer had not been publicly identified, and nearby residents and environmental groups opposed the proposal over power, water, wildlife, and transparency concerns near Big Oaks National Wildlife Refuge (Indiana Public Media, 2026-06-26).
  • Google / Morgan County fiscal district and annexation dispute: County commissioners voted 3-0 on June 15 to approve an economic-development area funded by a proposed TIF district containing Google’s Monrovia-area campus; one additional redevelopment-commission step remained. Separately, Monrovia began exploring annexation of the site, creating a local dispute over tax base and sewer service rather than changing the project’s underlying county zoning approval (Morgan County Correspondent, 2026-06-18; Indiana Public Media, 2026-04-03).

4) Legislative activity (2024-2026)

5) Notable projects (announced / under construction / operational)

  • AWS, St. Joseph County / New Carlisle: AWS announced an $11 billion campus in 2024, followed by a $15 billion northern Indiana expansion tied to 2.4 GW of capacity in 2025. In 2026, the associated NIPSCO contract received IURC approval, while an IDEM wetland-permit process and local opposition continued (IEDC, 2024-04-25; Amazon, 2025-11-21; IURC Cause No. 46322 final order, 2026-06-17; IDEM public notice 2025-78-71-ENH-WQC-2, 2026-05-13).
  • Meta, Lebanon: Meta broke ground February 11 on a campus projected by the company to exceed $10 billion, reach 1 GW, employ more than 4,000 construction workers, and support 300 operational roles (Meta, 2026-02-11).
  • Google, Monrovia and Michigan City: Site work was underway at Google’s Monrovia campus, while AES’s April 22 filing for a 15-year electric-service contract remained pending. Google also acquired the $832 million Project Maize site in Michigan City, for which NIPSCO filed a separate pending customer-specific case (Morgan County Correspondent, 2026-06-04; AES Indiana, 2026-04-22; WNDU, 2026-04-16; NIPSCO, 2026-04-16).
  • Google, Fort Wayne / Project Zodiac: The initial $2 billion facility began operating in December 2025. On June 5, IDEM issued a Section 401 certification for a Phase III expansion of three additional buildings, associated infrastructure, and stream/wetland impacts; this was a material expansion approval during the update window (Data Center Dynamics, 2025-12-11; IDEM Water Quality Certification WQC001454, HEC mirror, 2026-06-05).
  • Microsoft, La Porte and Granger: Microsoft broke ground June 17 on the first La Porte campus; plans described six first-phase data centers and ultimately 17 buildings, with completion extending through 2029. Construction was also underway at the Granger site in St. Joseph County amid a resident petition and local concern (Data Center Dynamics, 2026-06-18; WSBT, 2026-05-21).
  • Potentia / Heartland, Sullivan County: Potentia announced construction had begun April 23 and projected up to $65 billion of tenant and partner investment by 2030, 2,750 construction jobs, and at least 500 permanent jobs. These are developer forecasts, not realized impacts (Potentia, 2026-04-23).
  • Next Frontier / Fluidstack, Sullivan County: Coatue’s Next Frontier venture announced a planned 430 MW, two-building campus leased to Fluidstack and financed through $5.7 billion of notes; reporting did not establish whether the investment is separate from or part of Potentia’s Heartland projections, so the values should not be added without further confirmation (Data Center Dynamics, 2026-05-05).
  • AWS, Wheatfield / Jasper County: AWS proposed an up-to-nine-building campus on 304 acres near the former Schahfer power plant, with a projected $7 billion investment; the proposal had not received final local approval by July 17 (Data Center Dynamics, 2026-06-03).
  • Prologis, Shelbyville: Shelbyville approved an economic-development agreement for an approximately 429-acre, up-to-11-building campus projected at roughly $2 billion; additional land-use and construction permits remain necessary (City of Shelbyville, 2026-04-06).
  • CoreWeave / Digital Crossroads, Hammond: A development agreement for the proposed $7 billion, 450,000-square-foot project expired June 30 without the project proceeding, making this a cancellation/status reversal rather than an active project (Inside INdiana Business, 2026-07-01).
  • Emerging proposals: Blue Ladder proposed an early-stage 322-acre, four-building campus near Wolcott without a secured end user or land at the cutoff; QLevr proposed a 3 MW, $105 million real-property project in Charlestown; and Surge Development discussed an approximately 1 GW Knightstown campus after Henry County PUD approval, but without a tenant (Data Center Dynamics, 2026-07-09; City of Charlestown meeting packet, 2026-06-08; The Brookville American, 2026-03-11).

Notes

  • This section prioritizes primary legal, local-government, IURC, utility, and company sources; company economic and operating projections are identified as such.
  • Project lists can overlap where a tenant, developer, utility proceeding, and branded campus refer to the same development; figures are not additive unless project identity is confirmed.
  • “Current as of 2026-07-17” reflects the date of this research snapshot.