(ELKHART) - Governor Mike Braun discussed the future of data centers in Indiana during the RV Industry Power Breakfast in Elkhart on Thursday.
Braun said data centers are becoming increasingly important to economic growth and national competitiveness, particularly as the United States competes with China in technology and artificial intelligence.
He said the United States once appeared to have about an 18-month lead in the sector, but estimated that advantage has narrowed to about six months.
Braun said data centers present significant infrastructure challenges because of their electricity demands.
"When it comes to data centers, it's hard to believe that one of them could use up to 5 percent of the electricity we currently generate as a state for our current businesses and households," Braun said.
He noted Indiana currently generates about 20 gigawatts of electricity and said new power generation, likely fueled by natural gas, would be needed to support future growth.
Braun also said major technology companies interested in building data centers should pay the full cost of the infrastructure needed to support their operations.
"Don't give them any abatements. They don't need it," Braun said.
According to Braun, some of the companies pursuing data center projects include Google and Amazon.
The governor said data centers are helping drive economic growth nationwide and warned that Indiana could fall behind if it fails to participate in the industry's expansion.
Currently, Indiana has four operating data centers and 36 additional facilities are planned.
Supporters of data centers say they provide critical infrastructure for artificial intelligence, technology and economic development. Opponents have raised concerns about environmental impacts, utility usage, noise and quality-of-life issues.