Indiana’s new law, House Enrolled Act 1210, gives local governments additional financial incentives to approve massive data center developments. By directing companies that receive sales-tax exemptions on electricity to share up to 1% of those savings with local governments, the law effectively encourages communities to welcome projects that many residents are still trying to fully understand.

At the same time, the law removes the ability of cities and towns to adopt rental cap ordinances—policies some communities recently enacted to address housing pressures.

Communities across Indiana deserve the chance to fully weigh the long-term consequences before policies push them toward projects that could reshape their neighborhoods for decades.

Across the country, residents in many communities have raised concerns about large data center developments. People worry about the enormous electricity demand required to power these facilities, the strain they can place on local water supplies used for cooling systems, and the environmental footprint of large industrial buildings built near homes and farmland. Others question whether the economic benefits match the scale of incentives offered, especially when these facilities often create relatively few permanent jobs compared with their size.

By tying financial incentives for local governments directly to data center electricity tax savings, House Enrolled Act 1210 may pressure communities to approve projects before residents have meaningful opportunities to evaluate their impacts.

Indiana communities should have the freedom to decide what kind of development fits their future—and how to manage their housing markets—without state policies pushing them toward one outcome.

We are calling on Governor Mike Braun and the Indiana General Assembly to revisit House Enrolled Act 1210 and amend it to ensure that local communities retain real authority over major development decisions and housing policies.

Hoosiers deserve transparent planning, meaningful local input, and development that truly reflects the needs and values of the people who live there.

If you believe Indiana communities—not incentives—should guide decisions about data centers and local housing policies, add your name today.