Indy officials greenlight $240M in tax breaks for southside data center
Indianapolis officials have approved $240 million in tax abatements for Sabey Data Centers' $4.3 billion hyperscale project on the city's southside, despite months of community opposition and a pending lawsuit. The city had previously rezoned 130 acres for the data center campus in Decatur Township. Sabey has committed to investing nearly $30 million in community improvements in exchange for the incentives.
Indianapolis officials have approved $240 million in tax abatements for Sabey Data Centers' proposed $4.3 billion hyperscale data center on the city's southside, specifically in Decatur Township. This decision came despite significant community opposition concerning health, property values, and environmental impacts, following a previous approval in March to rezone 130 acres for the two-building campus at 6400 Kentucky Avenue.
Pat Andrews, representing local residents and the Decatur Township civic council, voiced concerns that taxpayers would bear the burden of increased fire equipment and training costs without adequate compensation for local services like schools and fire departments. Mindy Westrick Brown, a lawyer for Sabey, stated the company is collaborating with the fire department and other communities with Sabey data centers to address these needs. Clete Casper, Sabey's director of real estate, expressed excitement about the partnership, noting the company's track record as a significant taxpayer and good corporate citizen.
In exchange for the tax breaks, which include $47 million in real estate property taxes over 10 years and $36 million for equipment taxes over 15 years for Sabey and an additional $157 million for its unnamed tenant, Sabey committed to investing $29.8 million into the southwest community. This investment will fund $5 million for road improvements and $24.5 million for a new aquatic center in Decatur Township, alongside other neighborhood incentives. Decatur Township schools Superintendent Scott Collins, however, remained neutral on the project, questioning whether the promised funds would directly benefit the schools due to the city's tax distribution structure.
Community opposition culminated in a judicial review lawsuit filed by seven residents in April to halt construction, a case currently under review. While the tax abatement vote proceeded, the Metropolitan Development Commission is scheduled to vote on a separate tax abatement proposal for another data center project, "Metrobloks," in the Martindale Brightwood neighborhood on October 21.