As another data center stalls, Indiana lawmakers try to sweeten the pot
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While another data center project stalls amid community opposition, Indiana lawmakers are trying to incentivize cities and towns to approve them.
Driving the news: A rezoning request for a data center proposed for Pike Township was withdrawn this week after pushback from neighbors and area leaders.
- American Tower Corp. said in a statement to local media that it would wait for the city to complete work on updating its zoning regulations before considering future projects.
The big picture: Data centers are cropping up all over the country, and Indiana — with ample water, relatively inexpensive land and a sales tax exemption — has attracted a number of large data center projects in the last few years.
- Communities, though, are pushing back.
State of play: The Indiana General Assembly is looking to tip the scales for local governments that may otherwise want to side with residents mounting opposition over concerns about the projects' local impact and resource usage.
- The House on Monday passed House Bill 1333, which would increase the sales tax charged to data centers from nothing to 1%. That 1% would go to the local government that approved the project.
Between the lines: It could be an attractive offer for local governments feeling the pinch of Senate Enrolled Act 1, last year's property tax overhaul.
What they're saying: "We've got to store data somewhere," said state Rep. Ed Soliday (R-Valparaiso), chair of the House committee on utilities and author of the 1% incentive language.
- Soliday said the discussion around data centers has "become so emotional" and suggested the 1% sales tax could be a boon for local governments.
Reality check: Lawmakers exempted data centers from the state's 7% sales tax in 2019.
What's next: HB 1333 has been referred to the Senate but has not yet been assigned a committee hearing.