Development plans for a new Google data center have been winding their way through the Indianapolis City-County Council in recent weeks. A final hearing on the proposal is scheduled for September 22 with a final vote to follow.

Residents in Franklin Township seem to largely oppose the plans (along with both city-county councilors representing different parts of Franklin Township). Until recently, so did the Franklin Township Community School Corporation (FTCSC). But they reversed course this week with a statement saying, “With the city and Google stepping forward as partners willing to listen and adapt, we believe this project represents the right kind of growth for Franklin Township.”

More pointedly, FTCSC Superintendent Chase Huotari issued a statement that acknowledged, “The agreement reached with the City of Indianapolis and Google ensures that fair property tax revenues flow to our schools.”

Back in early August, Huotari and FTCSC made clear they wouldn’t support the development “due to significant tax abatements and the creation of a tax increment financing district” because they would “divert critical property tax revenues away from our schools.”

So what does this new agreement entail, exactly? Nobody outside of Huotari, Google, and Indianapolis Economic Development, Inc. know because the deal is tied to a non-disclosure agreement.

Without knowing the details, I think we can at least presume the financial incentive offered to FTCSC makes up some or all of the gap left by Governor Braun’s property tax revisions (FTCSC is projected to receive about $2.4 million less in local property tax revenue in 2026 and 2027 under the new property tax code than they would have without the legislative change).

On the financial question, we can answer the title of this piece affirmatively. Financially, FTCSC will benefit from the Google data center given the closed-door deal they made. But that’s not the only factor to consider for whether or not this is a good thing for students and families.

Data Centers Harm Communities

I think data centers are bad for communities. Full stop. So I’m glad the good folks of Franklin Township are pushing back on the proposal, even amid the school corporation’s capitulation. I think they’re doing the right thing.

For starters, while FTCSC may be about to financially benefit, it’s not clear the rest of the township will given the tax carve outs that were originally proposed (assuming those hold true beyond whatever deal was struck with the district). But again, the financial angle is just one component to this.

For all the technology industry’s promises of sustainability and low environmental impact, time and again data centers seem to wreak havoc on the lives of people who live in proximity to them.

One example is captured in a recent Harvard University report whose authors wrote, “We are skeptical of utility claims that data center energy costs are isolated from other consumers’ bills.” Meaning: data centers have a penchant for driving up utility costs for residents.

Perhaps worse, data centers can have dire environmental impacts. A piece in Canary Media noted, “Energy experts argue that the growing electricity demands from data centers are prolonging America’s dependence on dirty energy sources.” More pointedly, stories about how data centers negatively impact local water quality abound. See also this Cornell University report titled, “The Unpaid Toll: Quantifying the Public Health Impact of AI” or this article from MIT News. I could go on. There’s no shortage of concerns to raise here.

Do the downsides (largely public health and environmental impacts) outweigh the upside (in this case for FTCSC, financial)? Franklin Township residents seem not to think so even as the district plays ball with Google. There may be short-term wins, but the long-term consequences loom large to me.

What makes this frustrating to me is that these data centers cropping up across the country (including possibly in Franklin Township) are primarily focused on powering generative AI. I’m not one of those types who think AI will somehow kill off the human race. But I’ve never seen a convincing argument (or use case, for that matter) that compels me to view AI as a net positive for society.

Putting all concerns aside, maybe there’s a world where data centers can be built and operated in such a way that they are fully positive for communities and bring no downsides whatsoever. I’m willing to grant the possibility. But we don’t live in that world yet.

In the meantime, I don’t think it’s wise to jeopardize the health and well-being of local communities in the here and now, even if it means a slight bump to school budgets. Some things are more important than money. Godspeed to the organizers at Protect Franklin Township.

Will Google’s Data Center Move Ahead?

The final hearing is slated for September 22. According to City-County Councilor Michael-Paul Hart, the votes are stacked against the Google data center. “We need fifteen to be successful and currently there are seventeen who have publicly said that they oppose the development,” he said in a quote to Fox59.

We’ll find out more come the 22nd.