Brad Colter told the Fayette County Commissioners that by passing a resolution, the county would be included in conversations about data centers.
Within a day, Colter’s prediction came to pass: they were included in conversations about data centers. By Friday, Colter felt compelled to try to set things straight by posting a video on social media: there is no data center in the county’s immediate future, but the county should be ready to consider it if the topic comes up.
Data centers are large buildings that hold the servers that power internet-based artificial intelligence. In communities that have them, data centers use massive amounts of local water and electrical power.
Colter said that is changing and Fayette County needs to evaluate proposals before rejecting them out of hand. Because the county has said no to a number of projects in the past, developers often bypass the county when they have a project at hand.
Colter is the chief executive officer of the Economic Development Group of Fayette County. He told the commissioners that he’s been working hard since he took the job in May to change perceptions of Fayette County.
“This doesn’t get us a project but it gives notice that we are open to it,” he told the commissioners before they voted on Nov. 18.
Agreeing with him, Dale Strong, president of the commissioners, said, “We are dealing with the economic currency of the future.”
Commissioner Dale Munson made a motion to approve the resolution, Commissioner Tracie Bever seconded it, and Strong made it unanimous.
Within a couple of hours, word of the action spread on social media. Reaction came strong and swift from people opposed to data centers, with some saying, incorrectly, that the commissioners had approved a data center without asking for public input.
What the commissioners passed is a document titled, “A Resolution of the Fayette County Board of Commissioners Supporting Energy and Industrial Development in Fayette County.”
It states that “data centers provide high-paying jobs, increase local tax revenues, and support technological advancement across industries” and that “Fayette County seeks to diversify its economic base and attract sustainable, long-term investments in technology and infrastructure;”
It goes on to state that “Fayette County formally supports the establishment of data centers within designated commercial and industrial zones, subject to applicable zoning and environmental regulations if applicable,” and then says the county will “explore expedited permitting processes for data center developments that meet energy efficiency and environmental standards.”
It also promises that “Fayette County will engage with residents and stakeholders to ensure transparency and address concerns related to noise, traffic and environmental impact.”
Many comments on social media expressed opposition based on perceptions of existing data centers. Those have been criticized for using massive amounts of water for cooling, and huge amounts of electricity, causing electric bills to increase in nearby communities.
Colter posted a video of himself on Friday morning. Taped in the EDG office, it’s much like a fireside chat, in which he clarifies what the resolution states and promises full transparency when any project is considering a location in Fayette County.
He asks the public to consider all of the facts surrounding a project before deciding whether to favor of oppose. That is also the position expressed by the International Economic Development Council in October, after hearing from local economic development officers at its convention in Detroit.
Citing the massive use of resources, the IEDC on Oct. 5, 2025, encouraged communities to proceed with caution.
“Why are the energy and water needs so high? Consider this: entering just five prompts into ChatGPT is the equivalent of fully charging your cell phone or drinking an entire 8-ounce glass of water. U.S. data centers consumed 17 billion gallons of water in 2023, with projections indicating this could quadruple to more than 68 billion gallons by 2028. AI’s growing demand for energy and water to support its functions is straining systems and supply chains, which fall further behind each week as countries across the world have fallen behind on major capital investments for grid enhancements, infrastructure investments, and the public policy implications that have yet to be considered.”
Another IEDC, the Indiana Economic Development Corporation, is also encouraging local counties to do just as Fayette County did: prepare to discuss data center projects.
Data centers are changing rapidly, Colter said. While the complaints about early data centers are true, new data centers are being proposed with closed-loop systems, using water for cooling but not taking it permanently from a water supply. Some data centers use other forms of cooling.
An analytical report from the Brookings Institution backs what Colter said. “New advances in microfluidics, where coolants are applied directly to chips, may improve our ability to cool semiconductors and make data centers more sustainable and less energy-reliant, but much is still unknown about the efficiency of such advances.”
Brookings issued its report, “The future of data centers,” on Nov. 5, 2025. The Brookings Institution’s website says it “is a nonprofit organization based in Washington, D.C. Our mission is to conduct in-depth, nonpartisan research to improve policy and governance at local, national, and global levels.”
It’s also likely some data centers will use power from a new generation of small nuclear plants, keeping them off of the electric grid altogether, Colter said.
Brookings reports, “Nuclear power appears to be rising as a possible energy source, with AI companies planning to open or reopen new plants in the United States. It offers the advantage of not generating the byproducts of fossil fuel consumption while being available all the time once facilities go online. The Three Mile Island plant suffered a partial meltdown in 1979, but it is planned to reopen in 2028 to power Microsoft’s data centers, provide 3,400 jobs, and generate billions in new tax revenue.”
Brookings also looks at operational costs, stating that companies usually pay less for electricity than residential consumers, and that at least one other state has considered a law to increase the amount that data centers would pay.
“It is also possible that there will be improved efficiencies in other areas. The Chinese firm DeepSeek, for example, claims it can process tremendous amounts of information with reduced processing power, lower costs, and fewer electrical requirements.”
County attorney Geoff Wesling told the commissioners it’s likely the Area Planning Office and the Plan Commission will need to look at adopting standards for allowing data centers. It would be wise to put rules in place before a project is suggested.
He added, “Who knows what this will turn into?”
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