Knightstown Weighs Electricity Costs of Data Center Project

Proposed data center facility raises concerns about energy impact on local grid and costs for residents.

Published on Feb. 14, 2026

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A proposed data center project in Knightstown, Indiana is raising concerns about the facility's significant electricity demands and the potential impact on local energy costs for residents. Data centers are known to be major consumers of power, accounting for over 4% of the nation's total electricity usage as of 2023.

Why it matters

The energy-intensive nature of data centers is a key consideration for local communities evaluating such projects. High electricity usage can strain the local power grid and drive up costs for residents and businesses, making the economic tradeoffs of hosting a data center an important issue for Knightstown to weigh.

The details

Details about the specific data center project planned for Knightstown have not been made public, but data centers in general are known to require massive amounts of electricity to power the servers, cooling systems, and other infrastructure. This can create challenges for local utilities to meet the increased demand, potentially leading to higher electricity rates for the broader community.

  • As of 2023, data centers accounted for more than 4% of the nation's total power usage.

The players

Energy and Environmental Study Institute

A non-profit organization that provides research and analysis on energy and environmental policy issues.

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The takeaway

The proposed data center project in Knightstown highlights the need for local officials to carefully evaluate the energy and cost implications of hosting such energy-intensive facilities. Balancing economic development with the potential strain on the local power grid and higher electricity bills for residents will be a key consideration.