HB 1043

                                                           Introduced Version
          HOUSE BILL No. 1043
                _____
              DIGEST OF INTRODUCED BILL
Citations Affected: IC 14-8-2-64.5; IC 14-25-18.
Synopsis: Data center water regulation. Defines "data center".
Prohibits a person from operating a data center in Indiana without
obtaining a consumption permit from the department of natural
resources (department). Sets forth information that must be included in
a consumption permit application. Establishes procedures for the
department to approve or deny a consumption permit application.
Provides that a consumption permit may be transferred under certain
circumstances. Provides that a person may consult with the department
to assess the viability of a proposed data center with respect to water
consumption. Allows the natural resources commission to adopt rules
to implement this bill.
Effective: July 1, 2026.
                               Burton
   December 2, 2025, read first time and referred to Committee on Natural Resources.
2026  IN 1043—LS 6203/DI 153
                                                                                       Introduced
            Second Regular Session of the 124th General Assembly (2026)
 PRINTING CODE. Amendments: Whenever an existing statute (or a section of the Indiana
 Constitution) is being amended, the text of the existing provision will appear in this style type,
 additions will appear in this style type, and deletions will appear in this style type.
   Additions: Whenever a new statutory provision is being enacted (or a new constitutional
 provision adopted), the text of the new provision will appear in this style type. Also, the
 word NEW will appear in that style type in the introductory clause of each SECTION that adds
 a new provision to the Indiana Code or the Indiana Constitution.
  Conflict reconciliation: Text in a statute in this style type or this style type reconciles conflicts
 between statutes enacted by the 2025 Regular Session of the General Assembly.
                   HOUSE BILL No. 1043
    A BILL FOR AN ACT to amend the Indiana Code concerning
 natural and cultural resources.
     Be it enacted by the General Assembly of the State of Indiana:
1    SECTION 1. IC 14-8-2-64.5 IS ADDED TO THE INDIANA CODE
2 AS A NEW SECTION TO READ AS FOLLOWS [EFFECTIVE JULY
3 1, 2026]: Sec. 64.5. "Data center", for purposes of IC 14-25-18,
4 means a facility:
5      (1) the primary services of which are the storage,
6      management, and processing of digital data;
7      (2) that is used to house:
8(A) computer and network systems, including associated
9components, such as servers, network equipment and
10appliances, telecommunications, and data storage systems;
11(B) systems for monitoring and managing infrastructure
12performance;
13(C) Internet related equipment and services;
14(D) data communications connections;
15(E) environmental controls;
16(F) fire protection systems; and
17(G) security systems and services; and
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1      (3) that has the capability of consuming at least ten million
2      (10,000,000) gallons of water in one (1) month.
3    SECTION 2. IC 14-25-18 IS ADDED TO THE INDIANA CODE
4 AS A NEW CHAPTER TO READ AS FOLLOWS [EFFECTIVE
5 JULY 1, 2026]:
6    Chapter 18. Data Center Water Regulation
7    Sec. 1. A person may not operate a data center in Indiana
8 without obtaining a consumption permit from the department. A
9 person must obtain a new consumption permit for each data center
10 operated by the person.
11    Sec. 2. (a) A person may consult with the department to evaluate
12 the viability of a proposed data center with respect to water
13 consumption.
14    (b) Upon request of a person described in subsection (a), the
15 department shall provide a written evaluation of a proposed data
16 center with respect to water consumption.
17    (c) If a person requests a written evaluation under subsection
18 (b), the department may request information and documents
19 related to the proposed data center from the person, including:
20      (1) a description of the project;
21      (2) the project's estimated:
22(A) water use rates; and
23(B) volumes for the:
24(i) maximum day;
25(ii) maximum month; and
26(iii) average year; and
27      (3) the anticipated source of water.
28    (d) Information and documents exchanged under this section
29 are confidential.
30    Sec. 3. (a) A person may apply to the department for a
31 consumption permit in a form and manner prescribed by the
32 department.
33    (b) An application under subsection (a) must include the
34 following:
35      (1) An application fee, as determined by the department.
36      (2) The signature of the applicant.
37      (3) A statement verifying that the information submitted is
38      true, accurate, and complete to the best of the applicant's
39      knowledge.
40      (4) A description of the data center.
41      (5) The data center's estimated:
42(A) water use rates; and
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1(B) volumes for the:
2(i) maximum day;
3(ii) maximum month; and
4(iii) average year.
5(6) The data center's anticipated source of water.
6(7) Information demonstrating that the data center will
7protect the public health, safety, and welfare.
8(8) Information demonstrating that the data center will utilize
9technologies or measures to promote:
10(A) water conservation; and
11(B) watershed health.
12     (c) An application fee paid under this section is not refundable
13 by the department.
14     (d) For purposes of subsection (b), technologies or measures that
15 promote water conservation and watershed health include:
16(1) water efficient fixtures and practices;
17(2) recycling water before discharge;
18(3) partnering with local water utilities to use discharged
19water from the data center;
20(4) using reclaimed water;
21(5) installing closed loop systems; and
22(6) supporting water restoration and replenishment in local
23watersheds.
24     Sec. 4. (a) The department shall review an application submitted
25 under section 3 of this chapter. If the department determines that
26 the application submitted under section 3 of this chapter is
27 complete, the department shall notify the applicant.
28     (b) The department shall return an application to the applicant
29 if the department determines that the application is incomplete,
30 inaccurate, or both.
31     (c) If the department returns an application to an applicant
32 under subsection (b), the department shall inform the applicant in
33 writing that the applicant may file a corrected application not
34 more than sixty (60) days after the receipt of the returned
35 application.
36     (d) Not later than ninety (90) days after notifying the applicant
37 of a complete application as described in subsection (a), the
38 department shall approve or deny the application.
39     Sec. 5. The department may not approve an application if the
40 data center that is the subject of the application will:
41(1) injure the public health, safety, and welfare; or
42(2) impair:
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1(A) water conservation; or
2(B) watershed health.
3    Sec. 6. If the department approves an application, the
4 department shall issue to the applicant a consumption permit.
5    Sec. 7. A consumption permit may be transferred or assigned
6 from a person that operates a data center to another person that
7 intends to operate the data center.
8    Sec. 8. The commission may adopt rules under IC 4-22-2 to
9 implement this chapter.
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