Indiana Lawmakers Reduce Data Center Incentives After Lobbyist Discussions

Indiana lawmakers have significantly reduced proposed financial incentives for data centers, changing a potential $5 million annual payment to a maximum of $350,000 based on electricity usage. This change followed private meetings between legislators and lobbyists, resulting in rewrites to the legislation that removed previous provisions for payments linked to equipment purchases. The new incentive applies only to data centers gaining local approval after June 30. The final law was signed by Governor Mike Braun on March 12.

Published Mar 28, 2026

Indiana lawmakers have reduced incentives for data centers from a potential $5 million annual payment to a maximum of $350,000 based on electricity costs. This change was made after private discussions with lobbyists and led to a cut from 1% of electricity costs to 'not more than' one penny on the dollar of the 7% sales tax exemption.

AI-curated by Theia

The law applies only to data centers approved after June 30. Governor Mike Braun signed the revised bill on March 12. The Data Center Coalition stated that data center growth contributed over $327 million in revenue in 2023. A study on the costs of tax incentives for data centers is expected by November 1.