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Data Centres: Boom and Backlash
10JUN

A third of Indiana counties resist

2 min read
10:06UTC

Roughly 30 of Indiana's 92 counties now restrict data centres, up from 12 three weeks earlier, while Indianapolis voted 5-3 to write zoning rules rather than pause approvals outright.

IndustryDeveloping
Key takeaway

Indiana's counties are restricting data centres faster than any statehouse could, one board at a time.

Roughly 30 of Indiana's 92 counties now restrict data centres, up from 12 three weeks earlier, the fastest county-level acceleration this sector has recorded. 1 The most recent baseline was Boone County's one-year moratorium on 15 June, then the twelfth such jurisdiction in the state . In the weeks since, counties have watched their neighbours and acted in turn, with no statehouse behind them.

Indianapolis broke the pattern. Its Metropolitan Development Commission, the body that regulates zoning in the state capital, voted 5-3 on 1 July to advance new siting rules rather than freeze approvals outright. Residents at the hearing had pressed for a full moratorium while those rules were drafted; the split vote shows how contested even the middle path has become.

Thirty counties acting independently is harder for an operator to fight than one state bill, because there is no single defendant to sue and no single veto pen to lobby. A statehouse ban leaves one target; a patchwork of ordinances leaves dozens, each cheap to pass and slow to overturn. That is the structural reason the centre of gravity in this fight keeps sliding downward, from federal curtailment to state tax to county zoning.

Deep Analysis

In plain English

Almost a third of Indiana's counties, roughly 30 out of 92, now have some kind of rule blocking or slowing new data centres, about triple the number from just three weeks earlier. This isn't one state law. Each county board makes its own decision, which is why the rules vary so much from place to place. Indianapolis took a softer path, voting narrowly to write stricter zoning rules instead of banning new projects outright while those rules are drafted.

Deep Analysis
Root Causes

Indiana's restrictions have no single author because the state legislature never wrote a statewide framework for data-centre siting; zoning authority over industrial land sits with county commissions by default, so each county is independently discovering the same gap and closing it with the only tool it has, a moratorium ordinance.

Indianapolis's Metropolitan Development Commission took the one path Indiana's zoning code makes available short of an outright ban: a 5-3 vote to write new rules rather than pause approvals, converting a political fight over whether to build into a technical fight over the rules a project must meet.

What could happen next?
  • Precedent

    Indiana's county-by-county wave gives other states without statewide moratorium bills a template that needs no legislative consensus to copy.

  • Risk

    Fragmented county rules give operators an incentive to site projects in the roughly two-thirds of counties with no restriction yet, concentrating rather than reducing total build-out.

First Reported In

Update #9 · US data-centre backlash becomes law

WFYI· 7 Jul 2026
Read original
Different Perspectives
Indian data-centre investors
Indian data-centre investors
Amazon, CPPIB and Google committed billions to Indian data-centre capacity within a single week in June, a market absorbing hyperscale investment while New Mexico and Maryland tighten permitting this fortnight. Every US moratorium makes that alternative more attractive, not less.
Gulf sovereign capital and hyperscale infrastructure investors
Gulf sovereign capital and hyperscale infrastructure investors
GE Vernova's turbine backlog grew to 116 GW and Synergy counted a 45 GW US pipeline the same week New Mexico killed a pipeline outright. Capital keeps moving toward campuses that can secure power fastest, in the Gulf as much as Texas or Virginia.
New Mexico and Virginia regulators, and the counties opposing the build-out
New Mexico and Virginia regulators, and the counties opposing the build-out
Garcia Richard killed Energy Transfer's Green Chili lateral for a second time on 15 July, and Sierra, Santa Fe and Socorro counties layered moratoria on top; Virginia's DEQ, lacking a PFAS rule, issued Amazon's Lake Anna permit regardless. Consent belongs in statute, and New Mexico's 2027 bill is the next test of whether that principle spreads.
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.