Gary, Indiana’s Energy Crisis: Could It Become a National Crisis?

Gary Indiana 

On August 11, 2026, a derecho storm, tornadoes, and historic levels of flooding swept through Gary, Indiana, leaving thousands of residents without electricity, water, or functioning sewage pumps.

According to the Northern Indiana Public Service Company (NIPSCO), restoration efforts on August 15 were delayed following a suspected shooting in the area where NIPSCO workers were attempting to restore power. This forced businesses and schools in the area to remain closed, leaving residents perpetually frustrated. Some residents expressed that they “should not have to be in survival mode” because of what they viewed as NIPSCO’s negligence. Other residents expressed concerns for elderly (older than 70 years old) individuals and young children living in houses where temperatures were rising above 85 degrees, creating dangerous conditions for these already vulnerable groups. 

Additionally, residents are concerned that efforts to restore power were not properly coordinated and that there was no sense of urgency to restore electricity, particularly because Gary, Indiana’s Black population and approximately 14% of its residents live below the poverty line. Residents argue that the prolonged outage disproportionately affects a community that already faces significant economic challenges. After lasting two weeks, power was finally restored on August 26. However, the damages caused by the outage, including spoiled food, lost medicine, and property damage, have economically burdened residents further. 

A resulting class-action lawsuit against NIPSCO alleges that inadequate vegetation management practices caused or worsened the disruption of electrical service and the widespread power outage. NIPSCO strongly disputes these claims. 

A.I. Data Centers in Indiana 

After the A.I. Insurgence in the United States, the Gary, Indiana, blackout leaves the underlying question floating in the air, waiting to be addressed: “How many data centers are in Indiana?”

In 2026, Indiana will have about 72 data center facilities, with five data centers run by major companies such as Amazon, Meta, and Google, comprising billions of dollars worth of investment. The five facilities have a combined disclosed capacity of 5,640 megawatts (MW) – this includes the largest single investment of one major AI company in Boone County. Despite having fewer facilities than Texas, the capacity exceeds Texas’s 4,500 MW. This unforeseen, rapid growth of AI data centers in Indiana requires tremendous amounts of energy, raising concerns for the electric power grid. 

For example, a ChatGPT query is estimated to consume about 2.9 Wh, nearly ten times the 0.3 Wh of a regular Google search. Plus, A.I. computing racks can reach power densities of 30-100+ kW per rack, where normal servers typically operate at 7-10 kW. This extreme amount of power creates considerable strain on infrastructure like cooling systems – requiring water – and electric power grids. It should also be noted that these large-scale GPU clusters can produce power fluctuations of megawatts within seconds, again, further challenging the system’s balance and reliable grid operation. 

NIPSCO, the company handling the Gary, Indiana blackout, ignored HEA1007 (2025) and created a NiSource subsidiary company called GenCo to serve data centers. This arrangement makes it harder for the public to access critical information about GenCo’s arrangements with data centers. 

Trump Declares Emergency on National Grid 

On August 26, 2026, Trump signed an executive order declaring a national emergency concerning the security of the United States’ power grid. The goal of the executive order was to protect the electric grid from potential foreign interference, sabotage, cybersecurity threats, and supply-chain vulnerabilities. While this concern was first raised in April 2025, it is notable that the declaration occurred on the exact day power was restored in Gary, Indiana.

One of the notable aspects of the executive order was the following statement: 

“Certain foreign actors are increasingly creating and exploiting vulnerabilities in the United States bulk-power system, which provides the electricity that supports our national defense, vital emergency services, critical infrastructure, and the economy.”

In June 2026, Trump also signed an executive order aimed at advancing American A.I. innovation, strengthening cybersecurity, protecting critical infrastructure, and ensuring that the United States remains a global leader in AI. However, just two months later, he declared a national emergency concerning the security of the nation’s power grid, citing vulnerabilities posed by foreign powers. The two orders, ironically, contrast with one another. The rapid expansion of A.I. relies on the national grid, but if the national grid is in a state of emergency, regardless of foreign powers or not, should we be straining the grid more—especially when there are events like what took place in Gary, Indiana?

Conclusion

After a disaster like what occurred in Gary, Indiana, and the POTUS signs an executive order declaring a national emergency concerning the national power grid, there must be a reflection—a reflection on emergency protocols during blackouts, the rapid expansion of A.I., and what we can do as the American people to initiate change.

Sources: 

“AI Data Centers.” Citizens Action Coalition, www.citact.org/ai-data-centers. Accessed 28 Aug. 2026.

“AI Data Centers in Indiana.” Ban the Bots, www.banthebots.org/explainers/ai-data-centers-in-indiana. Accessed 28 Aug. 2026.

“We Have Felt Invisible’: Black Gary, Indiana Residents Trapped in ‘Extremely Dangerous’ Conditions as Blackout Drags Into Second Week.” Atlanta Black Star, 19 Aug. 2026, https://atlantablackstar.com/2026/08/19/black-gary-residents-trapped-in-extremely-dangerous-conditions/.

Chen, Xin, et al. “Electricity Demand and Grid Impacts of AI Data Centers: Challenges and Prospects.” arXiv, 8 Sept. 2025, arxiv.org/html/2509.07218v.

Duster, Chandelis. “Thousands in Northwest Indiana Still Without Power Nearly Two Weeks After the Storm.” NPR, 23 Aug. 2026, www.npr.org/2026/08/23/nx-s1-5515064/indiana-power-outage-storm-nipsco. Accessed 28 Aug. 2026. (NPR Las Vegas)

Faguy, Ana. “Frustration Builds in a US City Struggling Without Power for 12 Days.” BBC News, 23 Aug. 2026, https://www.bbc.com/news/articles/clyly8vdpdwo.

“Gary, Indiana’s Power Outage: NIPSCO, Utility Corporate Greed, and the Blame for the Blackout.” Mother Jones, Aug. 2026, https://www.motherjones.com/politics/2026/08/gary-indiana-power-outage-nipsco-utility-corporate-greed-blame-blackout-power-outage-storm/.

Gray, Shardaa, and Dylan Olsen. “Class Action Lawsuit Filed Against NIPSCO Over Weekslong Northwest Indiana Power Outages.” CBS News, 21 Aug. 2026, www.cbsnews.com/chicago/news/nipsco-class-action-lawsuit-northwest-indiana-power-outage/. Accessed 28 Aug. 2026. (CBS News)

“Latest List of Top New Data Centers in Indiana, United States (US).” Blackridge Research & Consulting, 13 Feb. 2026, www.blackridgeresearch.com/blog/latest-list-top-new-data-centers-in-indiana-united-states-us. Accessed 28 Aug. 2026.

“NIPSCO Says Power Restored to 99% of Customers in Northwest Indiana More Than 2 Weeks After Devastating Storms.” CBS Chicago, 26 Aug. 2026, https://www.cbsnews.com/chicago/news/nipsco-99-percent-power-restored-northwest-indiana/.

The White House. “Fact Sheet: President Donald J. Trump Declares a National Emergency to Secure America’s Bulk-Power System.” The White House, 26 Aug. 2026, www.whitehouse.gov/fact-sheets/2026/08/fact-sheet-president-donald-j-trump-declares-a-national-emergency-to-secure-americas-bulk-power-system/

Wagner, Sarah. “Trump Declares National Emergency to Secure Power Grid.” American Faith, 27 Aug. 2026, https://americanfaith.com/trump-declares-national-emergency-to-secure-power-grid/

Wright, Aubrey. “Power Outages End for Most of Gary, Northwest Indiana.” The Indianapolis Star, 26 Aug. 2026, https://www.indystar.com/story/weather/2026/08/26/power-outages-end-for-most-of-gary-northwest-indiana/91470680007/

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