Merom Coal Plant to Power Google & Amazon Data Centers; Hoosiers at Risk for Footing the Bill

NIPSCO GenCo has entered into a 12-year agreement with Halldor Energy Company to supply power from its Merom coal-fired plant to new data centres operated by Google and Amazon in Michigan City, Indiana. This deal marks a notable development, as it would be Google’s first data centre in the United States to be partially powered by coal, highlighting the ongoing reliance on fossil fuels amid the expanding demand for data centre capacity driven by artificial intelligence technologies. The contract is currently under review by the Indiana Utility Regulatory Commission, with public comments being solicited before a decision is made. The move has sparked significant concern among local environmental and consumer advocacy groups. Megan Anderson from the Sierra Club warned that approving the contract could lead to increased utility bills for Indiana residents while exacerbating pollution in the region. She emphasised that the rising energy costs are already a burden for families and small businesses, and criticised major technology corporations for prioritising their growth over the welfare of local communities. Similarly, Ashley Williams of Just Transition Northwest Indiana highlighted the long history of coal-related pollution in Michigan City and condemned the secrecy surrounding the new contract, describing it as a continuation of environmental harm inflicted on the area. The controversy underscores broader tensions between the tech industry’s rapid expansion and the environmental and economic impacts on host communities. The use of coal power to fuel cutting-edge AI infrastructure appears at odds with growing calls for clean energy and sustainability in the tech sector. The public consultation period offers an opportunity for residents and stakeholders to voice their concerns before the regulatory body finalises its decision. The outcome will have implications not only for Indiana’s energy landscape but also for how major data centre operators balance their energy sourcing in an era of increasing environmental scrutiny.