Indiana’s electricity landscape is set for significant changes, with data centers projected to account for over 20% of the state’s electricity consumption by 2030. This finding stems from a report released by the Electric Power Research Institute (EPRI), highlighting a trend that has been observed across various parts of the United States. According to Tom Wilson, EPRI’s principal technical executive, the growth of data centers is not only anticipated but actively being planned for by stakeholders.
The report, made public on February 26, 2023, utilizes state-level data to analyze operational capacities, ongoing constructions, and planned developments, offering scenarios for data center growth. The findings have sparked concern among local advocates, who are apprehensive about the implications for residential electricity users.
The EPRI report outlines two scenarios for growth. The low-growth scenario posits that most ongoing projects and a quarter of those in advanced planning will be operational by 2030. Conversely, the high-growth scenario assumes that all current projects and 30% of those in early planning will be completed by that time.
In addressing how these centers will meet their power demands, the report indicates that natural gas is currently the dominant source, as determined by existing state and federal policies. Should there be a shift towards 24/7 carbon-free energy, renewable sources and battery energy are expected to become more prevalent, with nuclear energy being integrated where feasible.
Wilson emphasized the need for a balanced energy mix, stating, “The reality is somewhere in the middle.” This projection aligns with national estimates, which suggest that data centers will consume between 9% and 17% of the United States’ electricity by 2030, a notable increase from the current 4% to 5% range. The report’s figures are approximately 60% higher than those presented in EPRI’s previous analysis in 2024.
Data centers typically do not disclose their power demand, which posed a challenge for EPRI in compiling its report. Notably, Meta is the only large company that regularly reports this data. Among the significant projects underway is an $832 million data center in Michigan City, with speculation that it is linked to Google. Additionally, Amazon Web Services announced plans for a data center in Hobart as part of a broader $12 billion investment in Northwest Indiana.
Local officials are also considering a development proposal from Sentinel Data Centers, which aims to build a facility on 160 acres outside of Lowell. As the number of data centers increases, Wilson notes that Indiana is experiencing unprecedented growth in this sector, leading to projections that data centers could account for nearly 30% of the state’s total electricity usage by 2030.
The anticipated rise in demand raises questions about the adequacy of the supply chain to support this growth. Wilson pointed out that utilities must be prepared to increase peak capacity to meet the continuous demands of data centers. He stated, “They’re going to want power every hour of the day, every day of the year.”
Concerns are also voiced by local advocacy groups. Ben Inskeep, program director for the Citizens Action Coalition, expressed skepticism about EPRI’s projections, suggesting that a 20% consumption rate might be a conservative estimate. According to the State Utility Forecasting Group’s 2025 Indiana Electricity Projects report, around 66,000 out of 160,000 gigawatt hours of projected consumption in 2030 could stem from data centers.
Inskeep highlighted the potential impact on residential customers, noting the “tremendous amount of uncertainty” surrounding the costs associated with data center operations. He cautioned that the electrical grid might struggle to accommodate the rapid growth in demand, saying, “The load is kind of outpacing the ability for developers to build new sources of generation.”
Echoing these sentiments, Ashley Williams, executive director for Just Transition Northwest Indiana, expressed her concerns in a statement. She articulated that EPRI’s findings confirmed her fears regarding the overwhelming energy consumption by data centers, stating, “This is energy that our communities and economy rely on every single day.” Williams also discussed the struggles faced by local residents to manage utility expenses, pointing to a recent emergency order from the U.S. Department of Energy that mandated the operation of the R.M. Schahfer generating station.
This order, issued by U.S. Secretary of Energy Chris Wright on December 23, 2023, aimed to ensure access to affordable and reliable electricity during the winter months. While the order modifies the decommissioning timeline for Schahfer, NIPSCO’s long-term strategy to transition to sustainable energy sources remains intact.
In response to the rising energy demands posed by data centers, NIPSCO assured that its focus remains on maintaining affordability and reliability for existing customers. The utility stated that any new developments within its service area will be managed through GenCo, a model specifically designed to prevent cost shifts onto residential and local business customers.
NIPSCO claims that its first data center agreement is projected to yield over $1 billion in direct savings for its customers over a period of 15 years, which will be reflected as bill credits. The utility emphasized that the costs associated with new energy infrastructure will be borne entirely by the data center operators.
Williams highlighted concerns that the increasing energy burden could result in the development of more costly and environmentally detrimental infrastructure to meet the demands of data centers. She remarked, “We already live in some of the most polluted zip codes in the nation and have fought too long and hard to be continually sacrificed for profit.”
As the state prepares for this significant shift in energy consumption, the balance between supporting economic growth and ensuring reliable energy for residents remains a critical focus for stakeholders across Indiana.
