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GARY, IND. — Mayor Eddie D. Melton has issued an Executive Order establishing a one-year moratorium on the development of new data center facilities within the City of Gary.
Gary currently has no data centers operating within the city. Mayor Melton noted this gives Gary an important opportunity to carefully evaluate the potential long-term implications of data center development and establish appropriate standards before the industry takes root in the community.
The Executive Order pauses the approval of new data center development while the City evaluates the potential impact of these facilities on Gary’s electric grid, water resources, infrastructure, environment, economic development, and long-term quality of life for residents.
“This is not about being against technology or innovation. It is about making sure Gary does not make a permanent decision about a rapidly evolving industry before we fully understand its long-term consequences,” said Mayor Melton. “Because we do not currently have data centers in Gary, we have an opportunity to be thoughtful and deliberate about what we allow into our community and under what conditions.”
Mayor Melton’s concerns have become more pronounced as the rapid expansion of artificial intelligence has accelerated demand for large-scale data centers across the country. The U.S. Energy Information Administration projects record electricity consumption in 2026 and 2027, with growing demand from AI-intensive data centers among the contributing factors.
At the same time, leading figures within the technology industry have publicly raised concerns about the pace and potential risks associated with increasingly advanced artificial intelligence. Those concerns underscore the need for communities which are considering data center development to carefully evaluate both the opportunities and the risks before making long-term commitments.
“I also believe the federal government has an opportunity to establish thoughtful guardrails around the continued advancement of artificial intelligence,” Mayor Melton said. “AI has enormous potential to transform our economy and improve our lives, but the speed at which this technology is advancing demands that we ask serious questions about safety, accountability, infrastructure, energy consumption, privacy, and the broader impact on our communities and workforce.”
Mayor Melton emphasized that local governments should not be forced to make long-term infrastructure decisions in isolation while national policymakers are still working to understand the implications of rapidly advancing AI technologies.
“Gary can be a city that embraces innovation while still demanding responsibility,” Mayor Melton said. “We should not have to choose between economic opportunity and protecting our residents. We can do both. But we must have the information, safeguards, and policies necessary to make smart decisions.”
The moratorium will provide the city with an opportunity to examine:
This examination shall also apply to any data center, regardless of its geographic location, that proposes to connect, directly or indirectly, to, or materially increase its use of or demand upon, any infrastructure, utility, system, or service owned, operated, controlled, or provided by the City of Gary.
“This is about responsible leadership,” Mayor Melton said. “Gary welcomes responsible investment, innovation, and economic opportunities that benefit our community. But development must work for Gary. We will not sacrifice the reliability of our infrastructure, the quality of life of our residents, or the long-term future of this city simply because an industry is moving quickly.”
The city will use the one-year period to engage residents, businesses, utility and infrastructure stakeholders, technology experts, economic development organizations, and other relevant partners as it evaluates the proper framework for future data center development in Gary.
Link: Watch Mayor Melton’s Video
Link: Read the Executive Order
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