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Gov. Mike Braun warned that Indiana needs swift solutions for its bevy of water and energy “challenges” to support the state’s expanding manufacturing sector.
The Republican governor gave candid remarks at a fireside chat at the 2025 Indianapolis Investment Forum held Tuesday at the Indianapolis Motor Speedway.
He touted Indiana as “the biggest manufacturing state in the country” and hoped for the Hoosier State “to be on the leading edge of the new base load.” Currently, though, “we clearly don’t have enough electricity.”
“Right now, (Indiana has) all kinds of opportunities that straddle AI and technology. We’ve got the biggest two issues, probably in the state, that have come out of nowhere — the availability of water and electricity,” Braun said. “Neither one of those was on the horizon. But if you’re going to tap into that new technology, you’ve got to have it.”
Utilities based in Indiana currently produce just 20 gigawatts of electricity, Braun emphasized. A single data center could consume 5% of that total capacity.
Indiana is already home to more than four dozen data centers — powerhouses for the AI boom. Citizens Action Coalition, a utility-focused customer advocacy group, has tracked nearly 30 more energy-demanding facilities that have been proposed across the state.
Part of the issue, Braun said, “is we’re shutting down our coal fleet prematurely.” Had Indiana “known” earlier that an influx of data centers and other development would create such an energy demand, “then we wouldn’t be in the pickle we’re in now — because we were so dependent on (coal).”
“If you don’t keep up with it, you’re going to pay even more for it,” Braun continued, referring to energy generation. “You’ve got to get a little bit out of your comfort zone.”
An ongoing, statewide push seeks to attract various high-tech industries to Indiana. Braun said data centers, in particular, “want to come here because we’re at least one of the 15 states blessed with some water.” Even so, it’s a resource that Indiana “doesn’t have in abundance.”
The governor said Indiana’s energy future “will probably be small modular reactors,” or SMRs. State lawmakers, with Braun’s support, already adopted new nuclear energy incentives during the 2025 session.
“I see an unbelievable opportunity, if again, we can set the stage,” Braun said about SMR technology, although nuclear developments are likely still a decade away. “I hope to be the first guy. We’re leading a consortium of them to get out on the leading edge.”
And with more manufacturing comes a need for even more STEM-trained workers, Braun added.
The governor said he’ll largely judge his administration’s achievements by its economic development gains — particularly around workforce development, skills training and attracting young talent for careers in emerging technologies.
“Are we getting more of our own kids to come back to Indiana, to raise a family, and start a business?” Braun asked. “If we can measure that, and do it well … we would call it a real success.”
The Indiana Capital Chronicle is an independent, nonprofit news organization that covers state government, policy and elections.
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