The explosive growth of Big Tech’s data centers nationwide is sparking a debate that could soon affect Indiana – and potentially Frankfort – as utilities warn that power-hungry facilities may be pushing electricity grids to the brink.
Texas was the first state to take action, passing a law this summer allowing utilities to cut off data centers during major power emergencies. The goal: prevent a repeat of deadly grid failures like the 2021 winter storm that left millions without heat and dozens dead.
Now, grid operators serving 13 states in the Mid-Atlantic and Great Plains – including Indiana’s grid connections – are considering similar policies. PJM Interconnection, which serves parts of Indiana, has floated a proposal that would deny guaranteed electricity to new data centers during grid emergencies.
Indiana’s High-Stakes Data Center Boom
Indiana is no stranger to the data center race. Google recently announced a $2 billion facility planned for Fort Wayne, filing a power-supply agreement that includes a voluntary reduction in electricity use during peak demand. The arrangement lets Google delay non-urgent computing tasks to off-peak hours — but critics argue that key details are hidden from the public.
Closer to home, Clinton County has been actively pursued by proposed data centers. Developers tout wthese projects as job creators, but the massive electricity requirements — often rivaling those of small cities — could strain the state’s grid if not carefully managed.
Potential Impact on Hoosier Ratepayers
Consumer advocates warn that without safeguards, the average Hoosier could see higher electric bills as utilities scramble to build new generation. Nationally, electricity prices are already rising twice as fast as inflation.
“This is a new way of thinking about electricity,” said Abe Silverman, an energy researcher at Johns Hopkins University. “Letting data centers use all the power they want 360 days a year but taking them offline for just a few hours could save billions of dollars in unnecessary power plant construction — and save ratepayers money.”
Frankfort and Clinton County Watching Closely
Either way, energy reliability will remain a top concern. A major data center project near Frankfort would bring significant tax revenue but could also force Duke Energy and Tipmont REMC to upgrade infrastructure, possibly passing costs to ratepayers.
With Indiana’s legislature expected to revisit energy policy in the next session, industry watchers say Hoosiers should expect to see proposals similar to Texas’ law: keeping the lights on for residents, even if it means asking Big Tech to turn theirs off.