Indiana data center and energy laws

What Indiana has enacted on data center and energy, what each law requires, and what the bills still moving would do. Indiana is one of 29 states that enacted a data center and energy law in the 2025 and 2026 sessions.

Bills in scope
12bills in scope
Past committee
4past committee
Most recent action
3 March 2026most recent action

Data center and energy laws enacted in Indiana

3 data center and energy laws enacted in the Indiana Legislature in the 2025 and 2026 sessions, newest first. Each links to the legislature's own page.

  • HB 1042Regulation and investment of cryptocurrency.Took effect 1 July 2026

    What it requires: Administrators of specified state retirement and investment plans must offer cryptocurrency exchange traded funds as regular investment programs. Boards may invest plan assets in cryptocurrency exchange traded funds. Public agencies, counties, municipalities, and townships may not adopt rules prohibiting individuals from accepting digital assets as payment, taking custody via self-hosted or hardware wallets, operating blockchain nodes, or conducting private digital asset mining in residences.

    Siting, zoning and permitting

  • HB 1007Energy generation resources.Took effect 1 July 2025

    What it requires: Taxpayers making qualified investments in small modular nuclear reactor manufacturing in Indiana must claim a tax credit equal to ten percent of qualified investment against state tax liability. Energy utilities must obtain Indiana Utility Regulatory Commission approval before acquiring generation resources to meet load growth exceeding five percent of average peak demand or 150 megawatts, or before serving large load customers requiring over 500 million dollars capital investment.

    Large-load tariffs and cost allocation, On-site and co-located generation, Grid reliability and load flexibility

  • SB 431Construction of data center by foreign adversary.Took effect 1 July 2025

    What it requires: After June 30, 2025, a foreign company may not construct or cause to be constructed a data center in Indiana unless the Indiana utility regulatory commission and the Indiana economic development corporation conduct a joint study and certify that the data center's electricity will be self-generated and will not affect the load supply of MISO or PJM.

    On-site and co-located generation, Grid reliability and load flexibility

Data center and energy in Indiana, by topic

Data center and energy bills in Indiana

The bills not yet law, furthest along first, with what each would do.

3Enacted

1Past committee

8Introduced or inactive

12 bills in scope

Past committee

1

HB 1333Land use and development.Passed chamber

What it would do: Requires developments on agricultural land with poor-quality soils to be permitted uses. Extends governmental immunity to private entities under Indiana brownfields program. Requires qualified data center users to contribute at least 1% of tax exemptions to local units. Redefines electric generation facilities to include battery storage systems and requires emergency response plans for such systems. Allows public hearing presiding officers to prioritize county residents and property owners in speaking order and time allocation.

Introduced or inactive

8

HB 1043Data center water regulation.In committee

What it would do: Prohibits operating a data center in Indiana without a consumption permit from the department of natural resources. Requires permit applications to include water use estimates, conservation measures, and public health protections, with department approval or denial within 90 days.

SB 234Energy utility matters.In committee

What it would do: Requires energy utilities to include provisions in tariffs for large load customers to reimburse all project costs regardless of service uptake, caps rate increases to average monthly percentage changes in seasonally adjusted energy prices, and prohibits utilities from recovering lobbying, political, charitable, and certain executive expenses through retail rates.

SB 257Electricity rate increases due to data centers.In committee

What it would do: Prohibits the Indiana utility regulatory commission from approving electric utility rate increases solely related to providing service to data centers or facilities in Indiana with electricity demand exceeding 5% of the utility's average peak demand or 150 megawatts and employing fewer than 50 full-time employees.

SB 79Data center development.In committee

What it would do: Requires the Indiana utility regulatory commission to establish a working group to estimate future data center electricity demands and report findings by October 31, 2026. Requires data center operators to submit quarterly electricity usage reports and local authorities to require disclosure of projected power and water usage before issuing construction permits.

HB 1189Labor requirements for data center incentives.In committee

What it would do: Requires agreements between the Indiana Economic Development Corporation and qualified data center users or quantum computing operators to include a requirement that they limit bids or requests for proposals to labor unions or employers with project labor agreements.

HB 1245IURC study of data centers.In committee

What it would do: Requires the Indiana utility regulatory commission to study how new electricity demand from data centers and large load customers affects utility costs and retail electric rates, with findings due in the commission's 2026 annual report.

HB 1156Digital asset mining.In committee

What it would do: Prohibits counties, municipalities, and townships from restricting digital asset use, storage, and node operation. Requires digital asset mining businesses to be permitted industrial uses in industrial zoning districts without special exceptions, variances, or permits, effective July 1, 2025.

SB 135Data center development.In committee

What it would do: Requires data center operators in Indiana to submit quarterly electricity usage reports to the utility commission, which publishes summaries online. Requires local governments to obtain disclosure of projected power and water usage and perform site assessments before issuing data center construction permits. Establishes a working group to estimate future data center electricity demands and report findings by October 31, 2025.

Bill titles link to the Indiana Legislature's own page.

What LawSignals covers

What counts as data center and energy legislation

In scope: Large-load tariffs and cost allocation; siting, zoning and permitting; tax incentives and clawbacks; on-site and co-located generation; water, cooling and emissions; and grid reliability and load flexibility.

Questions

Does Indiana have a data center and energy law?

Yes. Indiana enacted 3 data center and energy laws in the 2025 and 2026 sessions, among them HB 1042, HB 1007 and SB 431. Each is listed on this page with what it requires.

When do Indiana's data center and energy laws take effect?

HB 1042 on 1 July 2026, HB 1007 on 1 July 2025 and SB 431 on 1 July 2025.

Which data center and energy bills are moving in Indiana?

1 bill not yet law has passed a committee or a chamber, the furthest along HB 1333 (passed chamber).

What does Indiana legislate on most in data center and energy?

Grid reliability and load flexibility (5 bills), Siting, zoning and permitting (5 bills) and Large-load tariffs and cost allocation (4 bills).

Are these summaries reviewed by a lawyer?

No. Which bills count as Data center and energy bills, and the line on what each law requires or each bill would do, are drafted by software from the bill's own text and not reviewed by an attorney. Every bill links to the legislature's own record: read the text before relying on it. The list covers bills from the 2025 and 2026 sessions.

Know when Indiana's data center and energy law changes

An alert when a bill moves, and one report a month on what changed in every state and Congress.