City weighs $56M in tax breaks for Martindale Brightwood data center
Indianapolis economic development officials are recommending a $56 million tax incentive package for Metrobloks to build a data center in the Martindale Brightwood neighborhood. This proposal, which could also save potential tenants $339 million, faces significant opposition from local residents who have filed a lawsuit to stop the project. The decision on these tax breaks, which city officials say are crucial for the project's feasibility, is expected on July 15.
Indianapolis economic development officials are recommending a substantial tax incentive package, potentially worth up to $56 million, for Metrobloks, a Los Angeles-based data center developer. The proposed tax breaks, slated for introduction on July 15 and requiring approval from the Metropolitan Development Commission, are deemed essential for the development of a new data center campus in Indianapolis's Martindale Brightwood neighborhood. Additionally, future tenants of the facility could benefit from an estimated $339 million in tax savings.
This initiative marks the first public data center tax breaks in Indianapolis following intense local debates last year. City officials, through the Department of Metropolitan Development, assert that the $250 million construction project and $406 million equipment investment "would not be economically feasible" without these abatements. Metrobloks' attorney, Tyler Ochs, attempted to allay community concerns by stating the company would target small businesses, hospitals, banks, and schools as tenants, rather than "big tech" or AI companies.
Despite the economic projections, which include a $1.4 billion increase in the site's tax base and 35 new jobs, the project faces considerable opposition. Martindale Brightwood residents have engaged in a monthslong campaign against the data center in their historically Black neighborhood, culminating in a lawsuit filed in May to halt the development. The Indianapolis Economic Development Inc. (IEDI) reviewed the project's investment, though its specific "report card" for data centers remains unfinalized.