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How to Capitalize on the Passage of New Data Center Legislation in Indiana


ith the passage of new data center legislation, how can Indiana communities capitalize on this opportunity?

Indiana wins big with House enrolled Act 1405 allowing the Hoosier state to effectively compete in the attraction of data centers. This ground breaking legislative action creates an excellent opportunity for communities that have the necessary infrastructure assets as well as those that are prepared to respond to site location requests.

How will the new data center legislation aid in business attraction for Indiana?

In basic terms, this measure exempts data center equipment and most electricity used at a data center facility from personal property tax, as well as the state’s 7% sales tax.  These cost offsets make Indiana more competitive and are attractive to businesses as they can deploy the savings in alternate and meaningful ways.  Along those lines in order to make the tax break sustainable for Indiana, the data center owner/developer needs to invest $150 million into the project within 5 years. Given the typical growth pattern for data centers, this target is achievable.

Here’s a brief overview of exempt equipment:

  • Hardware that supports computing, networking or data storage functions including servers and routers.
  • Networking systems that have industry designation as equipment with an “enterprise” or “data center” classification.
  • Generators or other equipment used to provide an uninterrupted power supply to enterprise equipment.
  • HVAC equipment used exclusively to provide heating, cooling and ventilation to the above described equipment.

In more good news, the proposed administrative requirements to obtain and comply are not overly burdensome.  One key point to consider is that the business needs to be certified by June 30, 2029 to obtain the benefit. 

Which communities will be the first to win a data center project from the legislation?

Communities that are quick to conduct their due diligence and demonstrate needed data center attributes will be moved to the front of the line to capture their market share of this new wave of business attraction.  

A community can quickly set their site apart with a data center site certification. What does a data center site certification mean?  Data Center Certified sites are development-ready-sites that have passed a rigorous independent qualification process.  A certified site will reduce time to market and mitigate risk for owners/developers. 

What requirements should a Data Center Certified site meet?

Generally, the following must either be in place or, there must be a comprehensive plan, along with an estimated timeline and cost estimates to complete in place. Requirements include:

  • highly reliable and redundant power
  • strong fiber infrastructure
  • adequate water capacity
  • competitive cost structures insulation from man-made and natural risks

These basics in addition to:

  • Area demographics
  • Property ownership clarity
  • Availability of incentives
  • Understanding of state tax policies
  • Adequate transportation assets
  • Streamlined permitting processes

How can a community get their site Data Center Certified?

If your community has an interest in determining if there is or are suitable sites for Data Center certification, Verisite is ready to help you. Verisite has finally established the universal definitions and designations for site certification, offering a new, trustworthy standard for property owners, developers and communities that utilizes a consistent and standardized set of criteria to determine all aspects of a site’s readiness for development. The Verisite team will work collaboratively with you and local stakeholders to help ascertain and position your data center site effectively for success.  Contact us anytime to get started.

Verisite is a partnership between Ginovus, Veridus Group, and Plaka + Associates. It is built on significant experience with site selection, engineering, and economic development. Together, these firms have clearly defined and standardized the requirements for comprehensive site certification reporting. 


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