City approves $240 million tax break for data center developer's Decatur Township project
The Metropolitan Development Commission in Indianapolis approved over $240 million in tax breaks for Sabey Data Centers' $4.3 billion project in Decatur Township. This approval occurred despite ongoing opposition from local residents, who have filed a lawsuit to block the development, and a recent moratorium on new data centers in Marion County. Concerns include noise, utility rates, and potential health effects from the data center.
In Indianapolis, the Metropolitan Development Commission has approved significant tax incentives totaling over $240 million for Sabey Data Centers' proposed $4.3 billion data center campus in Decatur Township. The approval includes a 60% real estate tax reduction over 10 years and a 90% equipment tax break over 15 years. Mayor Joe Hogsett’s office hailed the project as one of Indianapolis’s largest investments, projecting Sabey to become a top 10 taxpayer in Marion County during the abatement period. Decatur Township Schools and the Indianapolis Public Library are expected to receive $31 million and $3 million, respectively, in tax revenue over 15 years.
Despite the economic projections, the project faces intense local opposition. Pat Andrews of the Decatur Township Civic Council raised concerns during commission hearings about the disparity between investment dollars and assessed value, potential health effects, and lack of benefits for the township fire department. Residents, including Andrews, have filed a lawsuit to block the development. The approval for Sabey’s project also comes after the development commission recently enacted a moratorium on new data center projects in Marion County through 2027, although Sabey's project was among three approved in the past year prior to the moratorium.
Sabey Data Centers plans a two-building campus spanning over 1 million square feet on 130 acres. The company has pledged $5 million for road improvements, the construction of an aquatic center, and annual charitable contributions. Sabey's attorney, Mindy Westrick Brown, highlighted the project's "economic ripple effects" and 300 construction jobs, asserting it would bring substantial public benefits. The company also intends to implement a closed-loop water-reduction system, provide greenspace for noise buffering, and install an on-site electrical substation with a 250-megawatt capacity, aiming to enhance grid reliability. Construction is anticipated to begin soon and conclude by 2031.