The Indiana Senate introduced Senate Bill 135 on January 8, 2025, aimed at regulating data center development within the state. The bill mandates that operators of data centers submit quarterly reports detailing their electricity consumption to the Indiana Utility Regulatory Commission (IURC). Additionally, the IURC is required to publish a summary of this data on its website, enhancing transparency regarding energy usage in the growing data center sector.

Before granting construction permits for new data centers, local governments—counties, municipalities, and townships—must require operators to disclose projected power and water usage. Furthermore, a site assessment must be conducted to evaluate the potential environmental impacts of the facility.

A significant aspect of the bill is the establishment of a working group by the IURC, tasked with estimating future electricity demands from the data center industry in Indiana. This group is expected to report its findings and recommendations to the General Assembly by October 31, 2025.

The introduction of Senate Bill 135 comes amid rising concerns about the environmental impact and resource consumption of data centers, which have proliferated in recent years due to the increasing demand for digital services. Proponents argue that the bill will help manage the state's energy resources more effectively and ensure that local governments are equipped to handle the implications of new data center projects.

As the bill progresses through the legislative process, it may face debates surrounding the balance between fostering economic growth through data center development and addressing environmental sustainability. Stakeholders, including local governments and environmental advocates, are likely to weigh in on the potential implications of the bill, particularly regarding energy consumption and resource management.

Senate Bill 135 is set to take effect upon passage, with a full implementation date of July 1, 2025, if approved. The bill's outcomes could significantly influence Indiana's approach to data center regulation and energy management in the coming years.