As more Northwest Indiana communities consider and accept data center proposals, Hoosier Environmental Council Executive Director Sam Carpenter gave Gary residents and local advocates the necessary information to decide if one would be best for the city.
“It’s important to understand the context of what we’re experiencing with data centers,” Carpenter said. “Data centers have historically been used for your email, your Netflix, your cloud computing, storing your pictures online. But they’ve changed pretty dramatically in recent years to support the growth of artificial intelligence.”
Gary Common Council Vice President Darren Washington, D-at large, hosted a community forum Thursday night about whether Gary needs data centers. Carpenter gave a presentation about data centers’ environmental impacts, what residents should know, and the actions that can be taken to prevent them.
Washington told forum attendees that the Gary council has not received requests about data centers.
As communities feel the impacts of the 2025 legislative session’s Senate Enrolled Act 1, Washington said they will become more reliant on local income taxes, and councils might be given the option to create another one. The legislation puts communities like Gary in a vulnerable position, Washington said, because the city might have issues allocating funds for the fire department, law enforcement and other general services.
“I want us to understand that although there is struggle, we are not a community or a council that’s going to grab at the first economic opportunity that comes our way,” Washington said. “In years to come, what cost (are data centers) going to bear to our communities?”
Data center operators are coming to Indiana for a variety of reasons, Carpenter said, including generous tax subsidies from communities — including sales tax exemptions — and state environmental policies that bend toward industry. Indiana ranks last in environmental protections, including low in water quality, Carpenter said, referring to a U.S. News and World Report ranking.
A single data center can use the same amount of electricity as an entire city, he added.
“There’s not really another industry that uses that amount of electricity, other than some steel mills,” Carpenter said. “But even they don’t use the gigawatts that some of these data centers are using.”
Cheap land, available water, electricity costs, power availability and infrastructure also attract data center operators to Indiana, he said. Before communities bring in data centers, Carpenter said it’s important to figure out how they will impact local resources, including water usage, environmental areas, and wildlife habitats.
Data center operators will often have local councils and other officials sign nondisclosure agreements before negotiations, Carpenter said, and he recommends community members pressure Gary not to do that if the opportunity arises. He also recommends creating a local ordinance to set standards for data centers.
“It’s important to have an ordinance that specifies decision-making around data centers specifically,” Carpenter said. “That way, if you already have an industrial area, they can’t come in without getting local approval. … I would also say have protection in place to ward off future expansion.”
Local environmental advocates, including members of Gary Advocates for Responsible Development and Just Transition Northwest Indiana, also expressed their opposition to data centers in the region.
Carolyn McCrady, member of GARD, said the organization wants Gary to enact a one-year moratorium on data center considerations, specifically because of the lack of transparency, tax incentives, environmental impact, and the lack of job creation. McCrady also said the city has no parameters for data centers in its comprehensive plan.
“In short, we have too many unanswered questions, financial and environmental red flags around a data center,” McCrady said. “We need time to sort out all the details and make a sound decision. We need to take the time to have a robust community conversation.”
Ashley Williams, executive director of Just Transition Northwest Indiana, also commented on her opposition to data centers Thursday night. Williams is a resident of Michigan City, which is receiving a more than $800 million data center despite resident opposition, and it has received more than $42 million in tax incentives through the Indiana Economic Development Corporation.
Williams encouraged Gary officials not to follow in Michigan City’s footsteps.
“Gary is the Magic City, and it’s a city on the rise,” Williams said. “I want you all to think about the solutions and all the things the city can be.”