Indiana Data Centers Drive 7 Billion Gallons in Annual Water Use

Amazon's Indiana expansion creates hidden water burden

A new $7 billion Amazon data center in Wheatfield, Indiana will directly use only 8-10 million gallons of water annually. But the fossil fuel plants powering it tell a different story: together, they're expected to consume nearly 7 billion gallons each year from the Kankakee River, according to reporting by Circle of Blue.

The infrastructure includes two new natural gas turbines and the existing R.M. Schahfer coal plant, which has operated since 1976. State regulators granted the region's primary utility unprecedented authority to generate energy exclusively for data centers, and recent policy changes will keep the coal plant running indefinitely despite its 2025 closure date.

According to Indiana Department of Environmental Management data analyzed by Circle of Blue, the Schahfer plant withdrew an average of 11.5 million gallons daily from 2022-2024, with peak days reaching 25 million gallons. The facility consumed approximately 940 million gallons in 2024 based on U.S. Energy Information Administration figures.

The new natural gas facility will draw up to 23 million gallons daily, consuming roughly 16 million gallons of that volume—translating to 5.8 billion gallons consumed annually, according to GenCo testimony from April 2026.

Why it matters

The water footprint reveals how AI infrastructure creates resource demands far beyond data center walls. While tech companies often highlight their facilities' direct water efficiency, the power plants required to run them can consume hundreds of times more water—a cost rarely included in sustainability reporting. Indiana expects data centers to account for over one-fifth of state energy needs by 2040, suggesting this pattern will intensify.

Pollution concerns compound water stress

The Schahfer plant sits in a region already facing environmental challenges. Testing in 2018 showed the facility's coal ash landfill contaminated groundwater with cobalt, arsenic, lithium, radium, boron, and molybdenum above federal thresholds. Water samples from 107 nearby wells between 2010-2019 found 86 percent contained at least one pollutant exceeding federal advisory levels.

The plant's unlined ash ponds, spanning over 80 acres, hold contaminated water 15 feet higher than the regional aquifer that supplies dozens of private wells. A one-foot slurry wall is the only barrier preventing seepage. The facility received an average of 2.88 million gallons daily of ash sluice water, boiler discharge, and stormwater as of 2020.

In 2024, the plant's on-site wastewater contained 567,763 pounds of chemicals including arsenic, barium, lead, and mercury, according to EPA data. Recent EPA proposals would roll back 2015 cleanup requirements for coal ash storage, potentially allowing contamination to continue indefinitely.

The Kankakee River runs directly adjacent to the plant within 100-year flood zones. State data shows 270 miles of rivers and streams in Jasper County are impaired. A sample from the Stalbaum irrigation ditch near Schahfer contained elevated molybdenum levels consistent with coal ash contamination.

Regional transformation accelerates

Amazon has invested roughly $29 billion over two years to establish what it calls a "Silicon heartland" in Northwest Indiana, with three data center campuses spanning 2,200 acres. The construction coincides with weakened environmental protections at state and federal levels in a state already experiencing some of the nation's most polluted waters, largest wetland losses, and worst air quality.

Experts project data centers will require more than one-fifth of Indiana's energy by 2040. Northwest Indiana is a statewide hotspot for lung, colon, and breast cancer incidences, with Hoosiers nearly 12 percent more likely to die from cancer than the average American.

The 7 billion gallons of annual water consumption from the Kankakee River would be sufficient to supply approximately 64,000 American homes for a year. The river intake well is located in an area classified as medium-high water stress by the World Resources Institute.

These details were first reported by Christian Thorsberg for Circle of Blue.