July 29, 2026 · Clark · Daviess · Sullivan · Union

Indiana Data Center Power Risk: Sullivan County Construction Cut the Tornado Sirens

Indiana data center power risk in focus: a Sullivan County crew cut power to tornado sirens as PJM grid costs climb, plus voestalpine, Kratos, and Workhorse.

Daniel BurkePublished every day

The clearest Indiana data center power risk this week didn't come from an electric bill, it came when construction crews on a Sullivan County data center campus severed the power lines feeding the county's tornado sirens during severe weather, exposing a gap in how Indiana coordinates heavy utility work near critical infrastructure. That's the anchor of today's TEG Daily brief, which also covers a European steelmaker's tariff-hedge expansion in Jeffersonville, a completed hypersonic facility at Crane, and Workhorse's bet on mobile AI data centers in Union City. Here's what every Indiana plant leader should take into the morning huddle.

01Sullivan

Sullivan County Siren Outage Exposes Indiana Data Center Power Risk

Construction crews on Potentia's phased $65 billion data center campus at Sullivan County's Heartland Industrial Park severed power lines feeding the county's outdoor tornado sirens during severe weather; emergency officials worked to restore the system and told residents to rely on phone alerts and weather radios in the interim.

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02Clark

voestalpine Doubles Jeffersonville Frame Rail Capacity as a Tariff Hedge

voestalpine Roll Forming Corporation is completing a €70 million, about $78 million, expansion at its Jeffersonville facility at the Ports of Indiana site in Clark County, doubling plant capacity to 80,000 tons a year on a new line producing frame rails for Class 6, 7, and 8 trucks, with production starting this month under long-term contracts with two global truck makers.

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03Daviess

Kratos Finishes $50M Crane Hypersonic Facility Ahead of Schedule

Kratos Defense completed its $50 million, 68,000-square-foot Indiana Payload Integration Facility at WestGate@Crane in Daviess County ahead of its end-of-2026 target. It can prepare up to six Mach 5-plus payloads at once, supports the $1.45 billion MACH-TB 2.0 program, and is backed by up to $18 million in state incentives and more than 100 jobs averaging above $80,000.

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04Union

Workhorse Bets Its Union City Plant on Mobile AI Data Centers

Workhorse Group said it will build containerized mobile AI data centers at its Union City plant in Union County, targeting 2027 production and framing the line as a way to use manufacturing capacity and generate cash flow.

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Questions for Your Morning Huddle

Q: Why are Indiana data centers raising electricity costs for manufacturers?
A: Data center load growth was among the drivers as PJM's latest capacity auction cleared roughly $9.3 billion higher than the prior year, and those capacity costs flow through to ratepayers including manufacturers on the PJM grid. Confirm which utility serves each facility and whether data center interconnection requests already sit in that utility's queue.

Q: What should Indiana operators check after the Sullivan County siren outage?
A: The outage exposed that Indiana has no statewide standard coordinating data center construction with critical-infrastructure power circuits. Operators near active or planned data center sites should audit their backup power protocols rather than assume uninterrupted grid continuity during nearby heavy construction.

Q: How does the Section 232 steel tariff affect Indiana manufacturers' supply costs?
A: The 50% Section 232 steel tariff expanded in June 2025 raises the landed cost of imported structural steel components, which is why voestalpine is localizing frame rail production in Jeffersonville. Indiana operators still sourcing steel or structural parts through import channels should model domestic-source alternatives now, because the tariff applies to finished imported components.

The Bottom Line

This brief