Indiana Data Centers Bypassed Federal Water Permits

Five major projects shifted to state-level oversight following a 2023 Supreme Court ruling and local policy changes.

Updated on Oct. 12, 2026 in Data Centers

Indiana Data Centers Bypassed Federal Water Permits

Live Poll

Should federal authorities have the final say on the development of land containing local wetlands?

Five data centers in Indiana escaped federal water permit requirements for wetland impacts following a 2023 Supreme Court ruling that narrowed the Clean Water Act. The projects, including sites for Amazon and Google, now operate under state jurisdiction while utilizing local wetland mitigation programs.

Why it matters

The change in oversight stems from a major narrowing of federal jurisdiction over surface waters combined with the 2024 passage of House Enrolled Act 1383. These shifts collectively reduced the regulatory burden on large-scale developments impacting Indiana's natural wetlands.

Google's 900-acre project in Fort Wayne impacts 2.4 acres of wetlands, with 2 acres now exempt from permits. Amazon's 1,200-acre New Carlisle campus initially requested to fill 10 acres of wetlands under previous oversight rules.

The players

Amazon

The technology giant is developing a 1,200-acre data center campus in New Carlisle that requires authorization to fill wetlands.

Google

The technology company is building a 900-acre data center campus in Fort Wayne that impacts 2.4 acres of wetlands.

Indiana Department of Environmental Management

The state agency now holds primary jurisdiction over surface water impacts at large-scale development sites.

Indiana Department of Natural Resources

The state department manages a wetland mitigation program that has collected $109 million in developer payments for restoration projects.

Army Corps of Engineers

The federal agency manages national water infrastructure and determined that the state mitigation program is currently out of compliance.

The details

Developers now navigate state-level wetland mitigation, paying into a fund to offset site-specific losses. However, the Army Corps of Engineers has officially declared the state's current mitigation program to be out of compliance with federal standards.

1972: The Clean Water Act was enacted to regulate surface water impacts.
2023: A Supreme Court ruling narrowed the scope of the Clean Water Act.
2024: House Enrolled Act 1383 reduced state-level wetland protections in Indiana.
July 2026: The Army Corps determined the Indiana state wetland mitigation program was out of compliance.

The Tech Race

As hyperscale data centers expand across the Midwest, their environmental footprint is increasingly dictated by state-level deregulation rather than federal oversight. This shift allows for faster development cycles but creates friction with federal agencies over how natural ecosystems are managed.

Residents may see an increase in large-scale industrial construction as regulatory barriers for land development are reduced. However, this may also lead to local concerns regarding the long-term health of regional watersheds and surface water quality.

The takeaway

The intersection of tech expansion and environmental policy highlights a growing trend toward state-led deregulation for large-scale infrastructure projects. Readers should monitor future state-level environmental reports to see how the loss of wetlands is offset by ongoing mitigation projects.