An Indianapolis data center operated 15 years without an air permit for multiple backup diesel generators, documents show, illustrating the potential challenges the state faces in regulating air emissions from the burgeoning data center industry.
Lifeline Data Center at 401 N. Shadeland Ave. opened in 2009 in the former Eastgate Mall in Warren Township, promising to bring a new era of IT service centers to the Circle City. At the time, city officials lauded the redevelopment of the dilapidated old shopping center, which had sat vacant since the early 2000s.
Even though Lifeline used a dozen diesel generators to power 80,000 square feet of high-tech computer servers during emergencies, the center did not apply for an air permit until 2025. And, it seems, Lifeline will face little if any repercussion for the years it operated under the radar.
Unless a center applies for and registers an air permit with the state, the Indiana Department of Environmental Management does not regularly check and inspect energy sources that could put exhaust, waste or pollution in the air. This meant the data center went years without regular inspections and oversight.
Lifeline owner Alex Carroll operates a second data center in Fort Wayne, which did not have an air permit prior to a 2024 surprise IDEM inspection. After that, Lifeline applied for permits at both the Fort Wayne and Indianapolis centers. No records prior to 2024 exist for either Lifeline facility.
Lifeline’s decade and a half operating without proper oversight underscores the concerns of residents across Indiana who worry data center operators won’t be held accountable for spewing pollutants into the air.
David Van Gilder, senior policy and legal director at the Hoosier Environmental Council, said the lack of oversight was “troubling.”
“Without quantifying it, we can say that this is not a good thing,” he said.
All of Lifeline’s 12 generators were manufactured in the 1980s, 1990s or early 2000s. All of those generators were reconstructed in 2009, 2012 or 2014.
In May, Indianapolis residents pressed the city’s Department of Metropolitan Development director about how the city would ensure data centers follow environmental regulations. The city’s answer: It was out of their hands. The state controls air quality compliance, namely IDEM.
It’s unclear how much emissions Lifeline’s data centers released or if the owner knew he needed an air permit. The 1963 U.S. Clean Air Act regulates air quality, and under the act, IDEM outlines online what energy sources require one.
Carroll did not respond to messages left by IndyStar asking about the permits.
Surprise inspection in Fort Wayne led to air permit violations
On January 5, 2024, Patrick Burton, a state environmental inspector in IDEM’s Office of Air Quality responsible for Allen County, was wrapping up a standard inspection on the south side of Fort Wayne when he noticed “uncontrollable visible emissions” on a nearby property, records show.
Burton drove to the Lifeline Data Center property at 7601 S. Anthony Blvd. and attempted to conduct an unannounced inspection into the source of the emissions. There, he met a facilities manager who said the emissions came from the site’s emergency backup generators. The site had no air permit, the manager said.
Burton subsequently asked to enter the site but was denied because he did not have a “Department of Defense background check,” which, according to the manager, was required to enter the facility. After a short discussion, Burton left. He did not file a violation that day.
On Feb. 1, 2024, Burton returned for a full inspection, where he noted five large diesel emergency generators, four of which were operational, allowed to run for up to 500 hours per year. The generators emit exhaust, Burton noted in the report.
Burton issued a violation letter to Lifeline for having an unpermitted energy source. Seven months later, in September 2024, Lifeline registered an official air permit for the Fort Wayne site.
Yet a permit for the Indianapolis Lifeline center was not officially in place until August 2025, about 19 months after the Fort Wayne surprise inspection, due to a series of delayed responses, back-and-forth emails about conflicting horsepower levels and numerous missed deadlines, records show.
In May 2026, IDEM conducted an air compliance inspection and issued a violation letter for the years Lifeline operated without a permit. Lifeline did not have to pay any fines as part of the violation.
Operating without a permit does not necessarily mean the facilities “exceeded applicable emission limits,” but it does mean the facility did not meet compliance obligations and did not keep up to date with legal “recordkeeping and reporting” requirements, an IDEM spokesperson said.
Emergency generators should only operate during brief maintenance periods, unless there are widespread power outages, according to IDEM. During a recent tour of the Lifeline Data Center in Indianapolis, Carroll told IndyStar reporters the data center goes down “less than 10 times a year.”
Van Gilder said Lifeline’s slipping through the cracks is an ominous sign for how the state will keep up with the influx of high-tech centers building in Indiana. While Lifeline operated with a dozen backup generators, newer, larger hyperscale data centers can have up to 200.
“This industry, as exemplified, decided they didn’t need to do it or didn’t know enough to do it,” Van Gilder said. “That shows they apparently weren’t trying to be a good citizen.”
Bottom line, Van Gilder says, as many of the heated debates over siting data centers have shown, Hoosiers want data centers to follow the rules.
Alysa Guffey writes business and development stories for IndyStar. Contact her at alysa.guffey@indystar.com.
This article originally appeared on Indianapolis Star: Indy data center operated 15 years without air permit, documents show
Reporting by Alysa Guffey, Indianapolis Star / Indianapolis Star
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By Alysa Guffey, Indianapolis Star | USA TODAY Network
