A bill requiring data centers to share one percent of their sales tax exemption savings with local governments passed the Indiana House Monday and now moves to the Senate.
And while that may help sweeten the pot for communities hosting these data centers, another provision in the bill may prove controversial; as written, developments would be allowed to move forward without a public hearing if they are built on farmland considered less fertile.
Kerwin Olson, executive director of Citizens Action Coalition, said this would “eviscerate” local control over what could be built in certain communities.
“It's concerning to see language that basically says whatever anybody wants to build, as long as you build it here, nothing you can do about it,” he said.
The Coalition doesn’t view the sharing of one percent of sales tax savings as enough to offset energy consumption issues, but it would be up to municipalities to weigh the costs and benefits.
“I think it depends on what does that one percent amounts to,” he said. “What else is involved in a local economic development plan for a community? But I think above all else, I'm not sure that changes anything.”
Ultimately, Citizens Action Coalition believes the way forward on the data center “gold rush” in Indiana is a full moratorium on developments until more regulations are in place.
Nearly 30 data centers are currently proposed or under construction in Indiana. Another 13 have withdrawn due to public backlash.
