Mayor's office supports data center tax breaks after internal rift
Indianapolis's mayor's office has publicly backed tax breaks for three data center developers, Metrobloks, DC BLOX, and Sabey Data Center Properties, despite an internal rift with the city's development director. The support comes as the City-County Council considers a data center moratorium and calls for stronger regulations. A vote on Metrobloks' tax package has been delayed.
The Indianapolis Mayor's office has affirmed its support for millions in tax breaks for three data center developers, a decision that follows an internal disagreement with Megan Vukusich, the city's development director. Vukusich, who serves under Mayor Joe Hogsett, had previously indicated her department would not back one of the proposed tax abatement plans, specifically for Metrobloks, citing ongoing efforts by the City-County Council to enact a data center moratorium until stronger regulations are established.
The tax incentive packages are being negotiated with Metrobloks for a 14-acre campus in Martindale-Brightwood, DC BLOX for an east-side campus, and Sabey Data Center Properties for a hyperscale project in Decatur Township. All three projects had received initial development approval earlier in the year. While the city's nonprofit economic development arm, Indianapolis Economic Development Inc. (IEDI), leads negotiations, the Department of Metropolitan Development (DMD) ultimately signs the deals. Metrobloks' proposed incentives could amount to $56 million in tax savings, plus an additional $339 million for a potential tenant.
Mayor Hogsett had previously expressed support for a data center moratorium set to expire at the end of 2027, acknowledging the importance of the issue to residents and the need for further engagement with stakeholders. The Metropolitan Development Commission (MDC), responsible for zoning and economic development, is scheduled to vote on these incentive packages. Amid the internal dispute and public comments against data centers, the mayor's office announced it would seek to delay the vote on the Metrobloks package to August 19, aiming to ensure residents receive transparent information.