Henry County

Surge Development LLC — 585 acres near I-70 & IN 109, outside Knightstown. Same developer that withdrew from Hancock County. No specific tenant/user announced. Planning Commission approved rezoning. County Commissioners approved PUD 2-1 (Jan 28, 2026). Company pledged no on-site water wells, will exceed environmental and emission standards. Community opposition active (nohenrycountydatacenter.org). Henry County REMC published public note about the proposal. Status: APPROVED.

HB 1405 (2019), signed May 5, 2019 by Gov. Eric Holcomb as Public Law 256. Codified at IC 6-1.1-10-44 (property tax exemption for enterprise IT equipment) and IC 6-2.5-15 (sales tax exemption for data center equipment). Created Indiana's data center tax incentive framework: sales tax exemptions on equipment and electricity, plus business personal property tax exemptions for qualifying data centers. Note: IC 6-1.1-12.3 (originally cited in some analyses) has been repealed; the active property tax provision is IC 6-1.1-10-44, as amended by P.L.256-2019, SEC.1.

HB 1405/P.L. 256 exempts: (1) Sales tax on data center equipment purchases — servers, storage, networking, cooling, backup power (IC 6-2.5-15-11); (2) Sales tax on electricity consumed by qualifying data centers; (3) Business personal property tax on enterprise IT equipment (IC 6-1.1-10-44) — duration set by local agreement between designating body and eligible business; (4) Sales tax certificate duration: 25 years (or 50 years if investment >= $750M) per IC 6-2.5-15-14. Qualifying thresholds are population-tiered (IC 6-2.5-15-10): $150M in counties >100K population, $100M in counties 50K-100K, $25M in counties <=50K. Investment must be met by 5th anniversary of certificate.

Surge Development LLC — Henry County Commissioners, 2-1 (Jan 28, 2026):
YES: Joe Wiley (Northern District), Steve Dellinger (Middle District).
NO: Susan Huhn (Southern District) — reported that 80%+ of constituents who contacted her asked her to vote against.

Dellinger stated: "For every one person who told him no, there were at least two others saying the county should do this."

Henry County Planning Commission had previously approved the rezoning (Nov 2025). Individual planning commission member votes not published.

ALL STILL IN OFFICE. Contactable via henrycounty.in.gov. Community opposition remains active (nohenrycountydatacenter.org).

NO LOCAL TAX ABATEMENT GRANTED YET — project still in early approval stage.

Henry County Commissioners voted 2-1 to approve a Planned Unit Development (PUD) outline for a potential data center near Knightstown (January 2026). Developer is Surge LLC. The project proposes a 585-acre "Henry County Technology Park" near SR-109 and I-70.

Surge LLC committed to generating "significant tax revenue for local schools and public safety" but no specific abatement resolution has been filed or approved. The PUD approval is only the zoning step — Surge says it will return with a comprehensive development plan before construction.

The Henry County Planning Commission initially tabled the proposal (Oct 16, 2025) before approving it (Nov 20, 2025). Commissioners approved Jan 2026 (2-1).

STATE LEVEL: Would be eligible for IEDC data center sales tax exemption if investment meets minimum thresholds.

NO — project too early in process for community enhancement negotiations.

The Henry County data center (Surge LLC) only has PUD zoning approval (2-1, Jan 2026). The developer committed to "significant tax revenue for local schools and public safety" but has not filed any community enhancement agreement or similar payment proposal.

Surge stated it will return with a comprehensive development plan — community benefit terms would likely be negotiated at that stage.

N/A — no community enhancement payment (see Q62). Project at PUD stage only.

N/A — no community enhancement payment exists. Project at PUD stage only.

PROMISED: Not specified.
- Surge LLC committed to "hundreds of union construction jobs"
- Permanent operations job count NOT disclosed in public reporting
- $25-30 million in water/wastewater infrastructure improvements tied to project
- Wage levels not published

DELIVERED: None. Project at PUD stage only (approved Jan 2026). No construction timeline. Developer says comprehensive development plan still forthcoming.

CANNOT BE CALCULATED — no abatement filed, no investment figure disclosed.

PUD approved but no economic development agreement. Surge LLC has not disclosed total investment amount or proposed tax terms.

Primary authors: Rep. Ed Soliday (R-Valparaiso, HD 4) — still in office as of 2026; Sen. Jim Buck (R-Kokomo, SD 21); Sen. Ed Charbonneau (R-Valparaiso, SD 5); Sen. Travis Holdman (R-Markle, SD 19); Rep. Erin Houchin (R-Salem, HD 47) — now U.S. Representative IN-9; Sen. Mark Messmer (R-Jasper, SD 48); Sen. Lonnie Randolph (D-East Chicago, SD 2) — Lake County. Co-authors: Rep. Earl Harris Sr. (D-East Chicago, HD 2) — Lake County; Rep. Todd Huston (R-Fishers, HD 37); Rep. Carolyn Jackson (D-Hammond, HD 1) — Lake County; Rep. Matthew Lehman (R-Berne, HD 79); Rep. Jim Pressel (R-Rolling Prairie, HD 20) — LaPorte County. Note: 3 of 12 sponsors represent Lake County districts.

House initial passage: 95-1 (Feb 19, 2019). Senate passage: 46-0 (Mar 25, 2019). Conference committee report adopted: House 82-8 (Apr 18, 2019), Senate 44-0 (Apr 18, 2019). Signed by Governor: May 5, 2019. The bill passed with overwhelming bipartisan support in all votes.

Surge Development LLC: (1) Henry County Planning Commission — approved rezoning (Nov 2025). (2) Henry County Commissioners — voted 2-1 to approve Planned Unit Development (PUD) outline on Jan 28, 2026. Community opposition active (nohenrycountydatacenter.org). Henry County REMC published public note about the proposal.

Surge Development LLC — Henry County Commissioners, 2-1 (Jan 28, 2026):
YES: Joe Wiley (Northern District), Steve Dellinger (Middle District).
NO: Susan Huhn (Southern District) — reported that 80%+ of constituents who contacted her asked her to vote against.

Dellinger stated: "For every one person who told him no, there were at least two others saying the county should do this."

Henry County Planning Commission had previously approved the rezoning (Nov 2025). Individual planning commission member votes not published.

ALL STILL IN OFFICE. Contactable via henrycounty.in.gov. Community opposition remains active (nohenrycountydatacenter.org).

Surge Development — Henry County Commissioners, Jan 28, 2026:
YES, public testimony. Developers of Surge Development LLC presented their proposal and answered questions. Residents spoke both for and against.

Commissioner Susan Huhn reported that 80%+ of constituents who contacted her asked her to vote against. Commissioner Dellinger countered: "For every one person who told him no, there were at least two others saying the county should do this."

Sentiment: SPLIT — commissioners received conflicting feedback. The community opposition group (nohenrycountydatacenter.org) organized sustained resistance. IPR described residents as "still split" after the vote.

The full hearing is available on video via the Henry County Board of Commissioners Facebook page (Jan 20, 2026 meeting recording).

YES — video recordings on Facebook.
Henry County Board of Commissioners Facebook: facebook.com/HenryCountyBOC
Jan 20, 2026 meeting (data center PUD approval, 2-1 vote): full video recording available at facebook.com/HenryCountyBOC/videos/1389653746197003/
Jan 6, 2026 meeting (data center guardrails discussion): full video at facebook.com/HenryCountyBOC/videos/1398633658324441/

Meeting summaries also posted to the HenryCountyBOC Facebook page.
Henry County website (henrycounty.in.gov) has Commissioner's Office page but minutes are primarily distributed via Facebook.

NOTE: Facebook video is less accessible than a government website — requires Facebook account to view in some cases, and is not indexed by government document search tools.

TWO SEPARATE STATUTES, TWO DIFFERENT ANSWERS:

PROPERTY TAX (IC 6-1.1-10-44): NO clawback mechanism. The statute authorizes a local "designating body" (county or municipality) to enter an agreement granting a property tax exemption. The eligible business must invest $25M+ and pay wages at 125% of county average (Sec. 44(b)(3)-(4)). However, the statute contains NO enforcement, recapture, or penalty provision if these conditions are later unmet. The only protection would be terms negotiated into the local agreement itself — the statute does not require any.

SALES TAX (IC 6-2.5-15): LIMITED enforcement via noncompliance assessment. Section 15 requires an agreement with IEDC including annual reporting of taxes not paid. Section 18 provides: if IEDC determines a company is noncompliant with the agreement or chapter requirements, IEDC notifies the Dept. of Revenue, which MAY impose an assessment up to the total taxes exempted plus interest and penalties. The trigger is failing to meet the "qualified data center" definition (Sec. 10) — i.e., not reaching the investment threshold by the 5th anniversary.

CRITICAL OMISSIONS: Neither statute requires job creation targets, community benefit commitments, water use limits, renewable energy use, or any ongoing performance metrics beyond the initial investment threshold. There are no wage requirements in the sales tax statute. The property tax statute has a 125% county average wage requirement but no mechanism to enforce it after the exemption is granted. The first economic impact study (Sec. 20) is not due until 2030 — 11 years after the law passed.

2026 session reform bills: (1) HB 1210 (Rep. Ed Soliday, R) — PASSED, weakened. Original: data centers pay fair share of electricity costs. Senate version: $5M/year savings to ratepayers. Final (after private meetings with industry): 1% electricity savings, capped at $350K/year. Signed into law. (2) HB 1333 (Rep. Beau Baird, R) — DIED. Would have protected farmland from data center conversion by requiring agricultural zoning protections. (3) HB 1245 (Rep. Matt Pierce, D) — DIED. Would have required IURC to study data center electricity impacts on ratepayers. (4) SB 257 (Sen. Chris Garten, R-Charlestown) — DIED. Would have protected residential ratepayers from bearing data center infrastructure costs. (5) SB 79 (Sen. J.D. Ford, D-Indianapolis) — status unclear. Would require data centers to disclose water and electricity consumption. (6) HB 1043 — Would require DNR water consumption permit for large data centers. 2025 session: HB 1007 — ENACTED. Requires data centers to commit to paying 80% of generation costs for electricity. Pattern: 5 of 6 reform bills in 2026 died. The one that passed (HB 1210) was weakened from $5M/year to $350K/year in closed-door meetings.

No. Indiana does NOT require state-level environmental impact review for data center projects. There is no state EIS/EIR process equivalent to NEPA for private data center construction. Permits required: IDEM air permits for diesel backup generators (Title V or minor source); NPDES water discharge permits; stormwater permits. These are standard industrial permits, not data-center-specific review. Local ordinances are filling the void: Lake County (Aug 2025) adopted a data center ordinance requiring noise limits, setbacks, energy efficiency plans, water management plans, and decommission plans. Kosciusko County (Feb 2025) classified data centers as "exceptional use" requiring special permits. These are LOCAL responses to the absence of state-level requirements.

No. Indiana does NOT require data centers to report water consumption or use renewable energy. No existing statute or regulation mandates either. SB 79 (2026, Sen. J.D. Ford, D) would have required water and electricity consumption disclosure — status unclear/likely died. HB 1043 (2026) would have required a DNR water consumption permit for facilities using large volumes — status unclear/likely died. For context: IU Environmental Resilience Institute reports US data centers consumed 17.4 billion gallons of water in 2023, expected to double by 2028. A single hyperscale campus requires 200+ acres, 100+ MW of power (equivalent to 80,000 homes), and millions of gallons of water annually for cooling. Indiana is projected to need 426 TWh of data center electricity by 2030 — "more electricity than all 6.8 million Hoosier households today" (IU ERI).

UTILITY: Henry County REMC (cooperative). Generation: Hoosier Energy / Wabash Valley Power Alliance.

RATE CASE: No IURC rate case (REMCs are cooperatives, not investor-owned).

GRID IMPACT:
- REMC confirmed the proposed data center site is in their service territory
- Hoosier Energy would handle any power agreement with the developer
- REMC stated: "if the project proceeds, we will ensure that any power agreement reflects terms and conditions that benefit our entire membership"
- Developer Surge claimed "committed to paying about 110% of the power we need" and that this could "subsidize" rates for other customers
- Community opposition cites rising electric costs as a concern

Opposition website: nohenrycountydatacenter.org
Developer info site: hctechpark.com

ESTIMATED WATER USE: Not disclosed.

Surge LLC has not published water consumption figures. The project includes $25-30 million in water/wastewater infrastructure improvements, suggesting significant water demand is anticipated.

WATER SOURCE: Local municipal/county water systems near Knightstown.
Henry County REMC noted the project would require infrastructure investment.

Community opposition (nohenrycountydatacenter.org) cites water consumption as a primary concern.

DEFENDING.

Henry County Commissioners voted 2-1 to approve the PUD. Commissioner who voted NO has not been separately identified in reporting. The majority cited economic development benefits.

Grow in Henry (economic development org) published support statements.
Opposition: nohenrycountydatacenter.org and Knightstown First organized against.

HENRY COUNTY COMMISSIONERS — voted 2-1 (Jan 28, 2026):

NO VOTE:
- SUSAN HUHN (Southern District) — re-elected 2024, term ends Dec 2028

YES VOTES:
- STEVE DELLINGER (Middle District) — re-elected 2024, term ends Dec 2028
- Third commissioner (Northern District) — re-elected 2024, term ends Dec 2028

NEXT COMMISSIONER ELECTION: Nov 2028.

All three commissioners ran in 2024 and won. Voters cannot weigh in on this decision for another 2+ years.

HENRY COUNTY PLAN COMMISSION: Advisory body, members appointed. Recommended approval before commissioners vote.

HENRY COUNTY COMMISSIONERS:
- Schedule: Regular meetings (check henrycounty.in.gov)
- Location: 101 S Main St, New Castle, IN 47362
- Phone: (765) 529-4705

PUD APPROVED (Jan 2026) — the zoning decision is made. Next steps are building permits and infrastructure agreements, which may not require additional public hearings.

HENRY COUNTY PLAN COMMISSION: Advisory body. Meets monthly.

HOW TO RAISE ISSUES: Contact commissioners directly. Public comment available at regular meetings. Opposition organized through nohenrycountydatacenter.org and Knightstown First.

== STATEWIDE VENUES (applicable to all Indiana counties) ==

INDIANA UTILITY REGULATORY COMMISSION (IURC):
- Holding 10 listening sessions across Indiana (Apr 2026) on rising utility costs
- Noblesville session Apr 9 drew ~20 residents connecting data centers to rate hikes
- Investigation into bill transparency and rising electricity costs
- Online comments: iurc.in.gov
- NIPSCO, AES, Duke rate cases are active — public comment periods exist for each

INDIANA GENERAL ASSEMBLY:
- 2026 session ADJOURNED sine die Feb 27, 2026
- Next session begins Jan 2027
- Key 2026 bills: SB 79 (IURC data center working group), HB 1210 (1% electricity savings surcharge), HB 1245 (demand study — never advanced)
- WFYI/Mirror Indy headline: "At a pivotal moment for data centers, Indiana lawmakers take little action"
- Citizens Action Coalition tracks all utility/data center bills: citact.org/26iga

IDEM (Indiana Dept of Environmental Management):
- Air permit applications trigger public comment periods
- Google Fort Wayne diesel generator permit was approved despite opposition
- Future data center air/water permits will have their own comment windows

== LOCAL (Henry County Commissioners) ==
1. DEMAND DEVELOPER IDENTITY AND INVESTMENT DISCLOSURE: Surge LLC has not disclosed total investment, tenant identity, or tax terms.
FACT: PUD approved without economic development agreement. No abatement filed, no investment figure disclosed (Q61, Q68).

2. NEGOTIATE CEA BEFORE BUILDING PERMITS.
FACT: No CEA or community benefit agreement identified (Q62).

3. REQUIRE WATER/ENERGY IMPACT STUDY: $25-30M in water infrastructure improvements planned but consumption figures undisclosed.
FACT: Community opposition cites water as primary concern (Q67).

== PLAN COMMISSION ==
1. PUD approved. Any modifications should trigger new public hearing.

== STATE LEGISLATURE ==
1. REQUIRE DEVELOPER DISCLOSURE OF IDENTITY AND TERMS before local approval votes. Henry County approved a PUD for an unnamed company.

== UTILITY COMMISSION (IURC) ==
1. PROTECT HENRY COUNTY REMC RATEPAYERS: Cooperative members should not bear costs of infrastructure upgrades for data center demand.
FACT: Developer claims 110% power payment but terms not public (Q66).