US adversaries welcome to build data centers in Indiana, under one condition

State lawmakers recently gave final, unanimous approval to Senate Enrolled Act 431 and sent the measure to Republican Gov. Mike Braun to be signed into law.

Under the plan, a company that's 50% owned by a foreign adversary nation, or headquartered there, may construct a data center in Indiana if it proves to the Indiana Utility Regulatory Commission and the Indiana Economic Development Corp. that the data center's anticipated electricity use will be self-generated and not affect the load supply of the state's electrical grids.

The countries currently designated as foreign adversaries are China, Cuba, Iran, North Korea, Russia and the Maduro regime in Venezuela, according to the U.S. secretary of state.

State Rep. Ed Soliday, R-Valparaiso, the House sponsor, said the proposal protects Hoosiers by ensuring any Indiana data centers operated by U.S. adversaries don't potentially endanger the state's power supply.

"There have been some events that can cause disruption. This prevents those from impacting our grid," Soliday said.

The Senate sponsor, state Sen. Eric Koch, R-Bedford, said he expects the legislation simply will deter foreign adversaries from locating any data centers in Indiana due to the high cost of obtaining an independent power supply.

Under House Enrolled Act 1183 (2024), foreign adversary citizens and companies already are barred from owning or leasing property within 10 miles of a military installation in Indiana or any agricultural land in the state.

Notably, both measures rely on the U.S. secretary of state's definition of a foreign adversary, which is subject to change based on the ever-evolving national enemies list of Republican President Donald Trump.