Subsidize the Costs; Privatize the Profits

Indianapolis Utility Customers the Latest Target of Data Center Grift

AES, also known as Indianapolis Power & Light Company submitted a rate review request to the Indiana Utility Regulatory Commission (IURC) on June 3, 2025. Utility providers are overseen by the government so they cannot raise rates without regulatory approval. AES claims it needs to raise rates because of increasing costs, aging infrastructure, and sustainability but the real reason is data centers.

Data center operators like Google, Microsoft, Amazon, and META and utility providers have dollar signs in their eyes and Indiana is a perfect place for them to maximize their profits. Indiana offers incredible tax incentives at the state level to attract data centers and local governments sweeten the pot by adding their own perks to get data centers to open in their jurisdiction. Utility companies also play a role by offering discounted rates to data center operators and then they turn around and charge their customers with the price of upgrading the infrastructure required to run these utility-sucking facilities.

A March 2025 paper from the Harvard Electricity Law Initiative reviewed 50 rate increase applications from around the country involving data centers. Entitled “Extracting Profits from the Public: How Utility Ratepayers Are Paying for Big Tech’s Power” the conclusion of their review was clear; data center operators and utility providers rake in huge profits subsidized by everyday rate payers.

At the local level, local elected officials, of both parties, feel forced to approve the requests from data centers to build in their communities because of the promise of jobs. It wouldn’t be politically wise to turn down jobs, right? However, much of the data from other communities around the country shows that the bulk of the jobs leave after constructions is complete.

It is unconscionable for massively wealth companies to further increase their profits on the backs of rate payers. If utility companies want to reap the benefits of providing large amounts of electricity to these data centers, they should be expected to eat the up-front costs, or at least pass those costs onto the data center operators, not their average customers.

The IURC public comment period is open for the AES rate increase review and the public is encouraged to submit their thoughts via this form. Also keep an eye out for upcoming public meetings as the review process requires public meetings to be held.