SB 431 creates a new chapter in the Indiana Code regulating the construction of data centers by foreign companies. The bill defines “data center,” “foreign company,” and related terms, and then prohibits a foreign company from constructing or causing the construction of a data center in Indiana after June 30, 2025 unless the Indiana Utility Regulatory Commission and the Indiana Economic Development Corporation jointly study the project’s expected electricity use and certify that the facility will be self-generated and will not affect the load supply of MISO or PJM.
The bill is aimed at large digital infrastructure projects and ties approval to energy reliability and grid impacts. It requires a formal certification to the governor and the General Assembly before construction can proceed, effectively creating a state-level review gate for certain foreign-owned or foreign-headquartered data center developments. The measure is framed as a utilities bill, but it also implicates economic development, energy planning, and foreign ownership concerns.
Impact
The bill adds IC 8-1-45 to the Indiana Code, creating new restrictions on data center construction by foreign companies and assigning new responsibilities to the Indiana Utility Regulatory Commission and the Indiana Economic Development Corporation. It does not ban data centers generally; rather, it conditions construction by covered foreign companies on a joint study and certification regarding electricity supply and self-generation. The practical effect is to limit or delay certain projects and to protect the load supply of MISO and PJM from potential strain.
Sentiment
The voting history suggests strong bipartisan support and little visible opposition: the Senate passed the bill 48-0, the House passed it 94-0, and the Senate later concurred with House amendments 49-0. No committee transcripts were provided, so there is no recorded debate to indicate substantive disagreement. The unanimous votes suggest the bill was broadly viewed as a targeted response to energy-security and foreign-adversary concerns.
Contention
The main policy tension in the bill is between encouraging data center investment and restricting projects tied to foreign adversaries or foreign-owned firms. Supporters likely view the measure as a safeguard for grid reliability, critical infrastructure, and state security interests, while any potential critics would be concerned about investment barriers, administrative burden, or the breadth of the foreign company definition. Because the bill requires a certification that the facility will be self-generated and not affect MISO or PJM load supply, the most likely point of contention is whether that standard is workable for large-scale data center development.