Indy to offer southside data center $242M in tax breaks
Indianapolis is considering offering Sabey Data Centers nearly $242 million in tax abatements for a proposed two-building data center campus in Decatur Township. City officials previously approved rezoning for the 130-acre project, which also includes Sabey's commitment to fund an aquatic center and road improvements. However, local residents have filed a judicial review to halt the project, citing concerns about health, safety, and property values.
Indianapolis economic development officials have proposed substantial tax abatements, totaling nearly $242 million, for a data center campus planned by Seattle-based Sabey Data Centers in Decatur Township. The project, located on 130 acres on the southwest side of Indianapolis, received rezoning approval from city officials in March to allow for a two-building facility.
Sabey Data Centers and an unnamed tenant plan to invest $4.3 billion in the property and equipment, making it one of the largest private investments in Indianapolis. In exchange for the investment, the city's economic nonprofit has recommended over $49 million in real estate property tax savings over 10 years and an additional $36 million in equipment tax savings over 15 years for Sabey. The tenant stands to save approximately $157 million in equipment taxes over the same period. Sabey has also committed to paying at least $29.8 million for infrastructure upgrades in Decatur Township, including $5 million for road improvements and $24.8 million for a new aquatic center.
Despite the economic incentives, the project faces opposition from some Decatur Township residents who express concerns about potential impacts on their health, safety, and property values. Seven residents have filed a judicial review to block the data center's construction, with a virtual hearing scheduled for August 20. The Metropolitan Development Commission is slated to discuss Sabey's full incentive package on September 16.