Decatur Township approves $240 million tax break deal for data center owner
Decatur Township in Indiana has approved a $240 million tax break for a data center owner, SABY, for a $4.3 billion data center project. The deal includes community contributions like road improvements and an aquatic center, in exchange for 75 new jobs. The decision has sparked public debate regarding the significant tax incentives provided per job created.
Decatur Township has approved a substantial $240 million tax incentive package for a data center project, as reported by the Indie Star and discussed on Tony Katz's show on 93 WIBC. The deal, involving the company SABY, is expected to facilitate a $4.3 billion investment in a two-building data center spanning over a million square feet at Road and Kentucky Avenue.
Under the incentives agreement, SABY will contribute $5 million for road improvements and $23.8 million for a community aquatic center. The project is projected to create 75 jobs, each paying an average wage of at least $50 an hour. However, the Indie Star's analysis highlighted that this amounts to approximately $3.23 million in tax breaks per job created, sparking public questions and debate about the value of the deal, despite the city's claim that the project is significant for new taxes and job creation/retention for Decatur Township.
The Department of Metropolitan Development and Indie Economic Development, Inc. were involved in negotiating the agreement. While host Tony Katz emphasized his general opposition to data center moratoriums, he also stressed the importance of evaluating such deals on a case-by-case basis, questioning whether giving away such a large tax incentive is justified, especially given the substantial tax break per job. He stated his intention to reach out to Decatur Township and the Metropolitan Development commission for further answers on the deal's benefits and rationale.