2026 AI Data Center Bill Watch List
Updated 2/25/2026 ~ 2026 Indiana General Assembly
Bad Bills ~ Good Bills ~ Bills we're watching
Bad Bills
HB1333: Land Use and Development (dead)
Authors: Rep. Kendell Culp (R), Rep. Jim Pressel (R), Rep. Craig Haggard (R)
Sponsors: Sen. Eric Koch (R), Sen. Blake Doriot (R)
Status: never received a hearing in the Senate Utilities Committee
Position: CAC opposes this bill
Votes:
- 1/20/26: The House Utilities, Energy and Telecommunications Committee amended HB1333 by a vote of 9-3, then passed it out of committee by a vote of 8-4.
- 1/27/26: The House Ways and Means Committee passed HB1333 by a vote of 14-6.
- 1/29/26: The House failed Amendment #1 (Pryor) by a vote of 24-65.
- 2/02/26: The House passed HB1333 by a vote of 54-45.
Description:
Requires a development that is sited on land: (1) in an area zoned agricultural; and (2) comprised of certain capability classes of soils; to be a permitted use. Extends governmental immunity to a private entity or nonprofit entity that has executed certain agreements under the Indiana brownfields program. Provides that before a qualified data center user may use a specific transaction award certificate issued after June 30, 2026, to purchase qualified data center equipment eligible for the state gross retail tax exemption, the qualified data center user and a local unit that issues after June 30, 2026, a permit authorizing the development, construction, or operation of the qualified data center in the unit shall enter into a written agreement that includes a commitment by the qualified data center user to contribute to the local unit an amount equal to at least 1% of the amount of taxes that are not paid on each purchase of qualified data center equipment that is made: (1) using the specific transaction award certificate; and (2) during the duration of the specific transaction award certificate. For purposes of the statute concerning energy production zones: (1) redesignates the term "electric generation facility" as "electric generation or storage facility"; and (2) provides that the term includes a utility scale battery energy storage system (BESS). Provides that if a planned electric generation or storage facility will include a BESS, the project owner must include in the required statutory notice to the local planning authority: (1) the emergency response plan required under the statute governing the approval of a BESS by the department of homeland security (department); and (2) documentation of the department's approval of the BESS. Makes conforming changes. Allows a plan commission, board of zoning appeals, or county or municipal legislative body (body) to require a person to provide their name and address in writing in order to speak at a public hearing regarding certain matters. Allows the body's presiding officer to give consideration to whether a person is a county resident or has an interest as an owner, lessor, lessee, or life tenant in real property within the county in deciding: (1) the order of speakers; and (2) the amount of time allotted to speakers; at a hearing.
Good Bills
HB1245: IURC Study Of Data Centers (dead)
Authors: Rep. Robin Shackleford (D)
Status: never received a hearing in the House Utilities, Energy and Telecommunications Committee
Position: CAC supports this bill
Description:
Requires the Indiana utility regulatory commission (IURC) to conduct a study to evaluate the effect of new and additional electricity demand from data centers and large load customers on: (1) the costs incurred by energy utilities to meet that demand; and (2) retail electric rates for all customer classes of energy utilities. Sets forth specific topics that the IURC must evaluate as part of the study. Requires the IURC to include in its 2026 annual report the commission's findings with respect to the topics evaluated in the study.
SB234: Energy Utility Matters (dead)
Authors: Sen. Vaneta Becker (R)
Status: never received a hearing in the Senate Utilities Committee
Position: CAC supports this bill
Description:
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Provides that any standard tariff offered by an energy utility to a large load customer must include a provision that requires large load customer to pay for all project costs reasonably allocable to the large load customer, regardless of whether the large load customer ultimately takes service in any anticipated amount and within any anticipated time frame.
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Provides that the IURC is not allowed to approve a rate hike that would cause average rates to increase beyond the average monthly percentage increase in seasonally adjusted electricity prices for the United States over the course of a specified period that ends with the last month of the energy utility's 12 month test period used in the proceeding.
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Provides that the IURC may not allow utilities to charge ratepayers for costs associated with lobbying, legislative action, political activities, charitable giving, litigation, investor relations, and other specified activities and expenses.
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Beginning in 2026, requires a utility to file with the IURC an annual report that includes specified information concerning costs to: (1) the utility; or (2) an affiliate of the utility; that are related to these expenses or activities and that are directly billed or allocated to the utility.
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Requires the IURC to make available on the IURC's website a direct link to the annual reports provided by all utilities under these provisions.
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Urges the legislative council to assign to the interim study committee on energy, utilities, and telecommunications the task of studying, during the 2026 legislative interim, the use of trackers by public utilities providing electric or natural gas service.
SB257: Electricity Rate Increases Due to Data Centers (dead)
Authors: Sen. Chris Garten (R)
Status: never received a hearing in the Senate Utilities Committee
Position: CAC supports this bill
Description:
Provides that the Indiana utility regulatory commission may not approve an increase in the rates and charges of an electric utility to the extent the increase is related solely to the electric utility's cost of providing electric utility service to: (1) a data center; or (2) a new or existing facility: (A) the electricity demand of which exceeds or will exceed a specified amount; and (B) that employs or will employ fewer than 50 full-time employees on the premises of the facility.
SB79: Data Center Development (dead)
Authors: Sen. J.D. Ford (D), Sen. Spencer Deery (R)
Status: never received a hearing in the Senate Utilities Committee
Position: CAC supports this bill
Description:
Requires the Indiana utility regulatory commission to establish a working group to: (1) determine an estimate of the future electricity demands of the data center industry in Indiana; and (2) report to the general assembly regarding the working group's findings and recommendations not later than October 31, 2026. Requires: (1) a person that operates a data center in Indiana to submit to the commission a quarterly report of the amount of electricity used by the data center in the immediately preceding quarter; and (2) the commission to publish a summary of the reported information on the commission's website. Provides that a county, municipality, or township shall, before issuing a permit to a person for construction of a data center: (1) require the person to disclose the projected power and water usage of the facility; and (2) perform a site assessment to determine the possible effects of the data center.
Watching
HB1043: Data Center Water Regulation
HB1104: Nondisclosure Agreements in Economic Development
HB1189: Labor Requirements for Data Center Incentives
