(Franklin County, IN) – Franklin County officials are weighing how — or whether — to regulate large data centers after an informational public meeting drew a crowd of roughly 95 people and sparked questions ranging from water use and noise to electricity costs and local control.
The Franklin County Area Planning Commission held the Jan. 14 session during a two-month moratorium on new data center building permit applications, giving county leaders time to gather information and develop zoning regulations for a type of development that currently has no specific local rules.
The meeting featured representatives from ABEI Energy, a Spain-based company with offices in Austin, Texas, and New York City, and projects under development in several states, including Indiana, Ohio and Illinois.
What ABEI described
ABEI’s national data center manager, David Ratovich, said data centers are large buildings filled with racks of computer servers and described modern facilities as resembling warehouses or office buildings.
Ratovich said ABEI’s concept would involve purchasing about 300 acres and eventually building up to 15 structures, each six to seven stories tall, with each building covering about six acres.
He said the proposal would start smaller — in the 80- to 160-megawatt range — and could ultimately reach 860 megawatts over roughly 15 years.
Ratovich estimated the construction cost could range from $1.5 billion to $2 billion.
Why Indiana keeps attracting these projects
Data center development has surged in Indiana and across the country as electricity demand rises and companies seek sites that can support massive computing and storage needs.
The U.S. Energy Information Administration has projected U.S. electricity consumption will continue rising and set new records in 2026 and 2027, with growth driven in part by expanding electricity use in homes and businesses — and by large power users such as data centers supporting artificial intelligence and cryptocurrency.
Indiana has also created powerful incentives designed to attract data center construction. Under the Indiana Economic Development Corporation’s Data Center Gross Retail and Use Tax Exemption program, qualifying projects may receive a sales and use tax exemption for up to 25 years — and projects exceeding $750 million may qualify for up to 50 years.
Questions about water and cooling systems
One of the biggest concerns raised by residents involved water use and cooling.
Ratovich said the operation would rely on a closed-loop cooling system, including recirculating water and a glycol setup that would require an initial fill between 10 million and 20 million gallons, with refills every three to four years using rainwater.
The plan also includes draining glycol periodically so it can be recycled, though questions were raised about emergency plans related to glycol drainage.
Noise, heat and quality-of-life impacts
Other residents asked about potential noise from fans and backup systems.
Ratovich said modern facilities use thick concrete walls and heavy glass doors and said the data centers “don’t hum,” adding that ABEI would fund a noise abatement study.
Questions about heat monitoring were also discussed, with Ratovich saying the company measures temperatures at server racks and could provide additional information.
Electricity costs and “who pays” remains a central issue
A recurring theme was electricity demand and whether grid upgrades would fall on local ratepayers.
Ratovich said the data center would have its own substation and claimed the project would not strain the grid, adding that the company would work with the state on needed electric buildout.
Some residents, however, questioned whether utility improvements could still raise costs for local customers, referencing concerns that major upgrades may be passed along through rates.
The debate is also playing out nationwide as grid operators and policymakers face a growing wave of high-demand projects tied to artificial intelligence computing.
PJM Interconnection, the nation’s largest power grid operator, has recently outlined plans aimed at managing data center-driven electricity demand growth, including proposals to ensure large new power users bring resources to match demand or accept potential curtailment during grid emergencies.
Jobs projections draw pushback
ABEI’s presentation also included discussion of employment.
Ratovich said the development could eventually employ between 4,000 and 6,000 people and said the company would make commitments related to training and hiring locally.
But some residents with data center experience questioned those projections and said large facilities can operate with far fewer full-time workers, raising concerns that specialized jobs could be filled by workers from outside the community.
“What happens next” in Franklin County
Franklin County officials say the purpose of the moratorium is to create rules before any project moves forward.
APC President Bob Braun said the commission is focused on gathering information so zoning regulations can be written specifically for data centers.
The APC created a public work group to update zoning rules, including APC Member Todd Raible, APC Director Kaitlin Sterwerf-Banks and public members David Mannix and Brian Moning.
The group’s first meeting is scheduled for Tuesday, Jan. 20 at 10 a.m. at the Government Center, and meetings will be open to the public and available to watch via Zoom.
The APC is also expected to request extending the moratorium beyond Feb. 24.
