RedwoodAI LabsARM × C2GElectoral & Legislative Tracker · 2026
v1.0MAY 2026
Electoral-Surface Read·MODERATE·Growing·IN

Indiana

Indiana is in a fast-rising but still local-policy phase: no statewide moratorium, but 2026 bills, utility-cost scrutiny, and Indianapolis neighborhood fights have made data centers a real issue.

EnergyWaterTalent

Energy/Power is the dominant stressor: local reporting repeatedly centers on grid demand, utility sourcing, and the risk of cross-class subsidies for residential customers (WFYI, Indiana HB 1245 text). Water/Geology is the secondary stressor: opponents of both Indianapolis projects repeatedly cite water use, groundwater contamination, and the historic industrial pollution burden in affected neighborhoods (WFYI, WFYI).

None identified. The data-center fight is affecting local governance more than candidate races so far; Indianapolis mayoral campaigning for 2027 is already being shaped by data center growth, but it is not a 2026 race. The 2026 Indianapolis City-County Council debate around Metrobloks in Martindale-Brightwood and Sabey in Decatur Township is issue-driven, not candidate-driven (WFYI, WFYI).

No statewide moratorium or ban was enacted as of May 2026. Instead, Indianapolis has moved toward interim guardrails: a January 2026 City-County Council resolution urging a temporary stay on approvals for high-impact data centers passed, and the city later released draft zoning rules to create a data-center category, but those rules were still moving through review in late April (WFYI, WFYI). Franklin County also created a Data Center Moratorium Workgroup and circulated draft local regulations, signaling local pause/oversight efforts rather than a state ban (Franklin County, Franklin County draft regulations PDF).

Indiana took a cost-allocation step rather than a pure moratorium approach. Governor Mike Braun signed HB 1210 on March 12, 2026, requiring data centers receiving state sales tax exemptions to share 1% of those tax savings with local governments (ArentFox Schiff). HB 1245 was introduced to require the IURC to study how new data-center and large-load demand affects utility costs and retail rates, including transmission/distribution costs, stranded assets, and cross-class subsidies; it required an IURC report in its 2026 annual report if enacted (Indiana HB 1245 text).

None identified.

1) Metrobloks data center, Martindale-Brightwood, Indianapolis — proposed on a nearly 14-acre former drive-in theater site at 2505 N. Sherman Ave.; approved by the City-County Council on May 4, 2026, but now being challenged in court by residents and the Hoosier Environmental Council (WFYI, WFYI). 2) Sabey data center, Decatur Township, Indianapolis — a $4 billion, 130-acre campus on the southwest side of Marion County; approved after months of pushback and later challenged in court by residents (WFYI, WFYI). 3) Google Franklin Township project, southeast Marion County — a 467/468-acre, roughly $1 billion proposal that drew major opposition in 2025 and was withdrawn before the final council vote (Axios Indianapolis, IndyStar).

Protect Franklin Township; Protect Martindale-Brightwood; Hoosier Environmental Council; Citizens Action Coalition; Martindale-Brightwood community organizers led by Cierra Johnson (IndyStar, WFYI, WFYI).

Inclusion criteria satisfied: Construction labor. AES Indiana and Indiana Michigan Power proceedings with labor commentary; building trades positions on hyperscale projects. Primary-source verification pending — full content in v1.2. Sub-state and labor-market analysis available in the full RAIL briefing.

Growing cluster. Indiana is not yet a top national hub, but Indianapolis is developing multiple large proposals and local governments are creating new rules; the state also has enough activity to justify a utility-cost study and local moratorium workgroups (WFYI, Indiana HB 1245 text).

“The Commission shall conduct a study to evaluate the effect of new and additional electricity demand from data centers and large load customers on ... retail electric rates for all customer classes” — Indiana HB 1245 introduced in 2026 (Indiana HB 1245 text).