Lawmakers will remove controversial land use provision from data center bill
Feb 05, 2026
Lawmakers will remove controversial land-use language
INDIANAPOLIS (WISH) — Senate Republicans on Thursday told News 8 they will not move forward with a provision that could have allowed some farmland to be used for any purpose without public input.
The measure currently includes language t
hat would permit any use on land that is zoned for agricultural use but has little farming capability. This would eliminate requirements for a public hearing, variance, special exception or even a discretionary zoning action. The Citizens Action Coalition’s Kerwin Olson said that would have meant anything could be built on such land, from data centers to oil refineries.
“Certainly data (centers) are a concern, but so are other things that create radioactive and hazardous waste,” he said. “Certainly, local communities should have a voice in those type of projects.”
The bill narrowly passed the House on Monday, with 13 Republicans joining all Democrats in voting against it. Its Senate sponsor, Sen. Eric Koch, R-Bedford, said he will have that portion of the bill removed in committee after speaking with the legislation’s original author, Rep. Kenneth Culp, R-Rensselaer, and with Senate Republicans including Senate President pro tempore Rod Bray, R-Martinsville.
“We’re looking at different options, but clearly, that language will not be moving forward,” said Koch. “The bill came over from the House and after that, we heard from a lot of the agricultural community and we discussed it among ourselves as members and decided that was not appropriate language to move right now.”
Koch said the bill will retain a separate provision that would require data center operators to share 1% of the savings they incur from their sales tax exemption with local units of government. He said this will help offset any potential negative impacts or mitigate costs local communities face. Olson said the fact lawmakers are considering that requirement reflects the broader pushback data centers have received.
Since the Senate is making changes to the bill, it will have to go back to the House if it passes the full Senate.
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