As I&M Looks to Fast-Track Natural Gas to Profit Off of AI Data Center Boom, Hoosiers’ Utility Bills Could Skyrocket

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Megan Wittman, megan.wittman@sierraclub.org

INDIANAPOLIS, Ind. – Parties have filed testimony against Indiana Michigan Power’s (I&M) expedited generation resource (EGR) plan which would add 3,300 megawatts of natural gas as the utility looks to profit off of the data center boom in Indiana. According to Citizens Action Coalition, the unidentified power plants for Amazon and Google AI data centers could cost more than $7 billion, and at least 39% of these costs could be forced onto customers, hitting their utility bills before 2030.

I&M’s EGR plan will be reviewed by the Indiana Utility Regulatory Commission (IURC) and a decision for the gas buildout will be made by the end of the year. Comments to the IURC can be submitted here. This is the first EGR plan since the Indiana State Legislature and Governor Braun granted a fast-tracking process for utilities to make a profit off of the data center gold rush in House Enrolled Act 1007. 

Google’s AI data center in Fort Wayne and Amazon’s New Carlisle AI data center are projected to require 1,200 MWs and 2,250 MWs of power respectively. Indiana Michigan Power is projecting that peak demand will more than double from 2,800 MWs in 2024 to as much as 7,000 MWs by 2030, growth that is almost entirely driven by AI data centers.  

In response, Megan Anderson, Senior Campaign Representative for Beyond Coal released the following statement: 

“By I&M’s own estimates, Big Tech’s data centers could more than double the need for power in its service territory, and by 2030, just a handful of data centers in I&M’s service area could use more electricity than all 6.8 million Hoosiers use in their homes combined. Across the state, customers are urging the IURC to reject I&M’s plan to build out gas for data centers which would greatly impact Hoosier families’ bills. Ratepayers are already burdened by expensive utility bills– we shouldn’t be forced to subsidize the massive costs of powering data centers and transmission for some of the wealthiest corporations in the world.”

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