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IBJ Publisher Nate Feltman’s observations in a recent column about the three biggest challenges awaiting Indiana’s next governor are spot on, especially regarding energy, which presents a unique challenge and a sense of urgency.
Indiana’s success in attracting $50 billion in new and innovative economic development projects—including three battery factories, a chip manufacturing plant and four data centers—is tremendous for the state’s gross domestic product growth. However, the growing concern from business leaders, including me, is that the state might be unable to provide the power needed to support these projects while also ensuring reliable and affordable electricity for current businesses and everyday Hoosiers. The president of the Economic Development Corporation of Elkhart County recently raised questions about Amazon’s $11 billion investment and whether there is sufficient power in the northeast part of the state to accommodate this project and other businesses.
During a recent visit to the headquarters of Indiana’s grid operator, Midcontinent Independent Systems Operator, I learned that Indiana’s power supply needs to catch up to support fast-growing demand. In addition to Indiana, MISO oversees the power supply of 14 other states also experiencing electricity demand growth. MISO’s reliability assessment reports highlight the challenge.
According to MISO, the grid will need substantially more power generation for projects like data centers that require large amounts of electricity just as existing power sources, like coal-fired plants, are scheduled to shut down. MISO officials continue to warn state leaders that shutting down power plants only exacerbates the current supply shortage.
Ensuring a reliable power supply is paramount for the business community, and affordable rates are equally crucial. Over the last 20 years, Indiana has gone from fourth-lowest-cost energy state to 26th. The urgency of this matter directly impacts Indiana’s growth and prosperity. While adding data centers is positive, a power shortage will drive up wholesale electricity market prices that Hoosier ratepayers are increasingly exposed to and may discourage other businesses from expanding or locating in Indiana.
Solving this emerging energy gap is one that the business community views as critical to our economic future. It requires immediate attention and prioritization from the General Assembly and the next governor’s administration, with active involvement from businesses and MISO’s expertise. This collective action is crucial to ensure Indiana’s energy infrastructure flourishes, attracting more projects and businesses to our state.
For deeper insights, please read MISO’s 2024 Reliability Imperative Report. Indiana’s economy will undoubtedly thrive with a reliable and affordable power supply but may suffer without it. Let’s unite and work together to address this pressing issue.•
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Anderson is CEO of E&A Cos. and chair of the Indiana Chamber of Commerce board.
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