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Data Centres: Boom and Backlash
15JUL

Indiana counties turn pauses into bans

1 min read
13:16UTC

Marshall and Cass counties banned new data centres outright, with no end date, part of roughly 30 of Indiana's 92 counties now restricting a build-out they once merely paused.

IndustryDeveloping
Key takeaway

Two Indiana counties replaced temporary pauses with permanent data-centre bans, removing the reopening date moratoria always kept.

Marshall and Cass counties in Indiana have banned new data centres outright rather than pausing them, part of roughly 30 of the state's 92 counties now restricting development. 1 A moratorium sets a clock; a ban does not. That distinction marks the shift, because it removes the reopening date every earlier Indiana pause carried.

The move escalates a county-by-county trend the beat has counted for months. In June, Boone County became Indiana's twelfth to pass a one-year moratorium ; Marshall and Cass set no end date at all. Roughly a third of the state's counties now sit somewhere on the spectrum from pause to prohibition.

The bans do not touch the demand. Governor Mike Braun is still selling Indiana to hyperscalers, a state-level pitch that runs directly against the counties now shutting them out. That split, a governor recruiting the load while local boards refuse it, is the shape the Indiana fight has settled into.

Deep Analysis

In plain English

Two more Indiana counties, Marshall and Cass, have gone further than most: instead of pausing new data centres for a year or two while they write rules, they have banned them outright, with no plan to revisit the decision. Around a third of Indiana's 92 counties now restrict data centres in some way. No governor or state law forced this decision. Each of Indiana's 92 counties is deciding on its own, so the state's data-centre map is becoming a patchwork of banned, paused and open areas rather than one statewide policy.

Deep Analysis
Root Causes

Marshall and Cass counties chose outright bans rather than the moratoria most of Indiana's other restricting counties adopted because a moratorium requires the county to eventually write zoning rules that let some future project through; a ban carries no such obligation and needs no follow-up ordinance, making it the structurally simpler tool for a county with no active project to actually manage.

Indiana's fragmented pattern, roughly a third of its 92 counties now restricting development with no state law or governor's action behind any of it, exists because Indiana zoning authority sits almost entirely at the county level. Unlike New York's single executive order, no one Indianapolis decision can freeze the state, so each county reaches its own answer at its own pace .

What could happen next?
  • Consequence

    Developers face a state where roughly a third of counties are permanently closed rather than temporarily paused, narrowing the map for new Indiana campuses.

First Reported In

Update #10 · New York freezes data centres by decree

WFYI· 15 Jul 2026
Read original
Causes and effects
This Event
Indiana counties turn pauses into bans
Indiana's data-centre backlash has hardened from temporary moratoria into permanent bans across a third of its counties.
Different Perspectives
Global hyperscale operators
Global hyperscale operators
Operators are still filing gigawatt-scale campuses and Meta is proceeding with its $10bn Lebanon, Indiana site despite the county-level bans nearby, betting Q2 capex outruns the patchwork of restrictions. Industry framing casts New York's freeze, Oregon's surcharge and Indiana's bans as taxes and levies that push build-out toward faster-permitting jurisdictions such as India and the Gulf.
EirGrid
EirGrid
EirGrid set a 900 MW instantaneous demand-loss ceiling because a single voltage dip can trip many data centres onto backup power at once, risking imbalance above 1,150 MW. It wrote the limit into a standing procedure rather than waiting for an emergency to force one.
US host communities and ratepayers
US host communities and ratepayers
Prince William residents backed the 8-0 denial of Dulles South over the Occoquan watershed, drinking water for eight million people, while Oregon's approved tariff cuts residential bills 1.3% by charging large loads 29% more. Their position: consent and cost-attribution belong in law, not left to a developer's or a utility's discretion.
Hassan Allam Digital Infrastructure
Hassan Allam Digital Infrastructure
Hassan Allam Digital Infrastructure, an Egyptian conglomerate rather than a foreign hyperscaler, reportedly secured a domestic hyperscale licence with a $400m first phase, per single-source reporting still to be verified. It reads as home-grown sovereign compute ambition, building national capacity rather than importing a US or Gulf operator's campus.
Damac Digital
Damac Digital
Damac Digital keeps building toward roughly 6,000 megawatts of hyperscale capacity across 13 countries while Virginia taxes power and New York weighs a freeze. Every dollar or month of delay a US state adds is capacity a Gulf developer can site somewhere with faster permitting and no equivalent levy.
Acequia communities, Santa Fe County
Acequia communities, Santa Fe County
Santa Fe County commissioners voted unanimously on 2 July to freeze any data centre over one megawatt, citing the acequia irrigation commons that has shared scarce water since Spanish colonial rule. They expect the low threshold to draw the same Fifth Amendment challenge RCM Hill brought against Hill County, Texas.