Indiana Data Centers Bypassed Federal Water Permits

A 2023 Supreme Court ruling shifted oversight of Indiana wetlands to the state, impacting large data center developments.

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?

Following a 2023 U.S. Supreme Court decision that narrowed the Clean Water Act, five Indiana data centers were exempted from federal water permitting requirements. Consequently, major projects like Amazon's site in New Carlisle and Google's facility in Fort Wayne now operate under state-level regulatory oversight.

Why it matters

The change reconfigured how large-scale infrastructure projects manage environmental impacts by shifting authority from federal to state levels. This transition, compounded by local policy changes, has created significant scrutiny regarding the effectiveness of state-run wetland mitigation.

The Indiana Department of Natural Resources has collected $109 million in developer payments for 27 active mitigation projects. However, the Army Corps recently determined that the state program is currently out of compliance with federal standards.

The players

Amazon

A global cloud computing and e-commerce leader currently developing a 1,200-acre data center campus in New Carlisle.

Google

A major technology company building a 900-acre data center facility in Fort Wayne that impacts 2.4 acres of wetlands.

Indiana Department of Environmental Management

The state agency that now holds primary jurisdiction over surface water impacts for these data center sites.

Army Corps of Engineers

The federal agency responsible for evaluating water infrastructure compliance against federal standards.

The details

The regulatory shift stems from a 2023 Supreme Court ruling that reduced the scope of the 1972 Clean Water Act, removing federal jurisdiction over many surface waters. In Indiana, developers now utilize a mitigation program to offset wetland loss, such as the 2.4 acres impacted by Google's site in Fort Wayne. This process is further altered by House Enrolled Act 1383, which reduced state-level wetland protections in 2024.

1972: Clean Water Act legislation was enacted.
2023: Supreme Court ruling narrowed Clean Water Act scope.
2024: House Enrolled Act 1383 reduced state wetland protections.
July 2026: Army Corps determined state program out of compliance.

The Tech Race

The transition of wetland oversight in Indiana follows the broader narrowing of federal environmental jurisdiction established by the 2023 Supreme Court ruling. This shift forces developers to reconcile site-specific infrastructure needs with the regulatory volatility of state-level mitigation programs.

Local residents may see shifting land-use patterns as large-scale facilities bypass historical federal oversight requirements. Stakeholders should monitor the status of the 27 active state-led mitigation projects to see if they meet the restoration goals previously held by federal standards.

The takeaway

The regulatory shift in Indiana highlights a significant transfer of environmental responsibility from federal to state authorities, potentially altering development timelines. Observers should track the 27 mitigation projects managed by the IDNR to determine if they successfully offset the loss of federal protections.