Gary Mayor Eddie Melton declared a one-year moratorium Wednesday on the construction of data centers in the city.
In a release, Melton said he issued the executive order because of concerns voiced by some tech leaders who called for a slowdown of its rapid advance of artificial intelligence over fears over possible risks.
“I also believe the federal government has an opportunity to establish thoughtful guardrails around the continued advancement of artificial intelligence,” 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.”
At the present, Gary doesn’t have a data center or plans for one in development.
In the past week, tech leaders have warned of a potential dark future where artificial intelligence threatens humanity.
Melton said the city has an opportunity to evaluate the long-term implications of data centers as many are developed in neighboring communities.
“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 Melton.
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Melton wants to study the electric grid, water resources, infrastructure, environment, economic development, and the long-term quality of life for residents before the city considers a data center.
Councilman Darren Washington, D-at-large and council vice president, voiced support for small 100-megawatt data centers, calling them “acceptable.”
Washington said he wished Melton would have been more specific about the size of data centers in his moratorium.
“I’m hoping the mayor can do more research. 100 megawatts or less – those are the way to go,” Washington said.
He said many community leaders consider data centers to help make up tax losses from a recent property tax relief law, SEA 1.
“A lot of these smaller ones have been operating for 10 years without protests. For the past 25 years, data centers with less than 100 megawatts have been around,” he said.
“It’s unfortunate SB 1 caused us to be uncomfortable but we have to be intuitive and think of ways to bring development to our community,” Washington said.
“We can’t get desperate because of SB 1 but the reality is we have to have public safety… we have a lot of land that doesn’t get utilized. We just have to be very cautious,” he said.
Melton said Gary can embrace innovation and demand responsibility from developers.
“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,” he said.
During the moratorium, Melton said the city will review the expected electricity demand, the impact to residential and commercial utility customers; water consumption, health and environmental considerations; infrastructure requirements and potential costs to the city; emergency preparedness and resiliency requirements; and tax revenue, jobs and capital investment along with the evolving risks associated with AI.
He said the scrutiny will 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 Gary.
“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.”
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He said 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.
Carole Carlson is a freelance reporter for the Post-Tribune.