NEW CARLISLE, Ind. — The Indiana Department of Environmental Management (IDEM) has ordered Amazon and its contractor, Walbridge Construction, to halt portions of work on the company’s massive new data center in New Carlisle, citing unauthorized impacts to wetlands on the site.

In a letter sent Monday, IDEM detailed that the wetland damage occurred last summer and covered just under an acre. The agency did not specify the exact nature of the “impact,” but confirmed it was not authorized under state environmental regulations.

The letter was addressed to both Amazon and Walbridge, requiring them to resubmit plans that account for the affected wetlands before proceeding. “Amazon was sent a deficient application and non-compliance letter, available via IDEM’s Virtual File Cabinet (VFC #83838498). As noted in the letter, the company was cited for impacting wetlands without authorization,” IDEM said in a statement to WSBT. “The company was instructed to cease all construction activities in waters of the state until they obtain the necessary authorization.”

According to IDEM, Amazon withdrew its original Section 401 Water Quality Certification application—dated January 15, 2025—on August 13, 2025. The agency said it expects the tech giant to resubmit the application later this year, incorporating both the unauthorized activity and additional mitigation measures.

The letter also revealed that Amazon’s incomplete application proposed activities that could affect more than nine acres of wetlands. Under Indiana law, such impacts violate two state codes: one prohibiting the discharge or allowance of contaminants or waste that cause pollution, and another prohibiting the disposal of organic or inorganic matter into state waters.

Walbridge Construction, Amazon’s contracted builder for the facility, has not yet issued an official public comment. When WSBT visited the site Wednesday, employees on location referred inquiries to company leadership, saying that “higher ups will craft a statement and get back to us.”

The situation appears to have been flagged internally by Amazon itself. The IDEM letter acknowledged that the concern was raised by Amazon representative Bijay Niraula, who also stated that the company “had no knowledge of Walbridge’s impact on the wetland.”

IDEM and the U.S. Army Corps of Engineers are now working directly with Amazon to resolve the violations. Amazon has 30 days from the date of the letter to submit revised plans that address the issues. If they fail to do so, IDEM could deny the company’s application altogether, potentially delaying or altering the multi-million-dollar data center project.

The New Carlisle data center is part of Amazon’s nationwide investment in cloud infrastructure to support Amazon Web Services (AWS), the backbone of many corporate and government digital services. Wetlands protection is a significant factor in large-scale construction in Indiana, as the state enforces strict compliance under the federal Clean Water Act and state water quality laws.

If IDEM’s requirements are met, the project could still move forward later this year—but under closer regulatory scrutiny. Until then, construction in or near the impacted wetland areas must remain at a standstill.

Originally reported by Francesca Onofrio in WSBT.