State lawmaker wants to require water permits for most data centers

By GARRETT BERGQUIST
WISH-TV |
wishtv.com

A southwest Indiana lawmaker told News 8 Monday he wants to ensure any large data centers don’t jeopardize water quality in their area.

Rep. Alex Burton, D-Evansville, has filed a bill to require every data center that consumes or expects to consume at least 10 million gallons of water per month to get a permit from the Indiana Department of Natural Resources.

Permit applications would have to include a description of the data center, water usage rates, the center’s anticipated source of water and information on how the facility will address public health and water conservation concerns. According to a fiscal note compiled by the Indiana General Assembly’s research arm, the Legislative Services Agency, Burton’s bill could potentially affect about 70 data centers in Indiana, of which only one is currently registered with the DNR as a significant water withdrawal facility.

Burton said he intentionally left some of the language in the bill vague so he can work with the DNR and the Indiana Department of Environmental Management on the specifics during session.

“There are so many questions out there whether people are pro- or anti-data centers, there’s not enough assurance on behalf of Hoosiers that feel comfortable with data centers,” he said. “If they’re going to exist, my thought process is to at least put something in place to guarantee that our water is safe and able to consume.”

Data centers have become a major public policy issue at the state and local levels. Google this fall canceled plans to build a data center in Franklin Township after an outcry from area residents over environmental concerns, such as impact to utility bills and water quality. Similar concerns have led to protests against proposed data centers in the Martindale-Brightwood neighborhood, Decatur Township and in Morgan County.

At last month’s legislative preview breakfast sponsored by the Indiana Chamber of Commerce, Senate President pro tempore Rod Bray, R-Martinsville, said he hopes to see legislation to address transparency surrounding data centers. Bray’s district includes all of Morgan County.

Citizens Action Coalition Executive Director Kerwin Olson said he likes Burton’s bill overall but he would like to see language added that ensures members of the public can access the information a permit application would require. He said much of the controversy surrounding data centers ultimately stems from the public’s inability to access even basic information about proposals in their neighborhoods.

“Nothing in the bill requires a public hearing or a public meeting for example, or lays out a process for comments from the public to be received,” he said. “A lot of the concern around data centers, and particularly looking at water, in the case of this piece of legislation, is transparency around the data center. What type of system do they have, how much water are they going to use, how much water are they going to be putting back, if you will.”

Olson said he’d also like to see clearer language in Burton’s bill on water consumption versus water withdrawal. He said withdrawal refers to how much water a facility pulls out of the water system while consumption refers to water that is not returned to the system once it’s used. He said many industrial water users, including data centers, put wastewater back into the system once they’ve used it.

State law already requires any entity that withdraws at least 100,000 gallons of water per day to register with the DNR but the law does not specifically address data centers. Burton’s bill sets specific requirements for data center applications and addresses water consumption rather than water withdrawals.

The Indiana Chamber of Commerce said they would prefer a case-by-case approach to data center permitting.

“The Indiana Chamber supports the responsible development of data centers in the state as part of a broader strategy to strengthen digital infrastructure, attract investment and foster innovation – while ensuring transparency, sustainability and community benefit,” said Vanessa Green Sinders, Indiana Chamber of Commerce President & CEO. “The construction of data centers should be evaluated on a case-by-case basis with input from public and private stakeholders. An evaluation by DNR may be appropriate in some circumstances, but ultimately no unnecessary burdens – including permitting – should be mandated by state law that could deter investment, stifle workforce development or impact negatively local communities’ economic growth strategies.”

Burton said his main goal with the bill is to bring all parties involved to the table to figure out the best policies for data centers moving forward. He said he plans to work with the Braun administration on provisions such as those dealing with transparency.

Burton’s bill, like all others, will face a tight calendar. Lawmakers return to the Statehouse on Jan. 5 and plan to wrap up their work by Feb. 28.

This story was originally published by WISH-TV at wishtv.com/news/politics/indiana-data-centers-water-quality.