Trenton approves 15-year tax abatement for data center

Trenton City Council has approved a 15-year, 75% property tax abatement for a 250-megawatt data center project in the city's industrial park. The project, developed by Prologis, will include four buildings and an electrical substation on 140 acres near homes, soccer fields, and farmland.

The data center has been a source of controversy, with residents expressing concerns about noise pollution, increased utility bills, and environmental impacts. Earlier this week, a group of residents submitted a petition to the city, seeking to amend the city charter to prohibit the construction of data centers exceeding 25 megawatts.

Under a Community Reinvestment Area agreement, Trenton will provide Prologis with the tax abatement for each new building on the site. Finance Director Matthew Mesisklis estimates that after the abatement, the taxable building value will be reduced from $233 million to approximately $58 million, generating about $1.3 million annually for the city and school district. Mayor Ryan Perry defended the abatement, stating it's necessary to attract businesses to Trenton.

Prologis has committed to creating 120 new full-time jobs by 2035 with an annual payroll of $9 million, an increase from their initial pledge. The developer has also made upfront payments, including $940,200 to Edgewood City Schools, $59,800 to Butler Tech, $2.5 million to Trenton Water Works, and $210,400 for city sewer capacity. Separately, the Council tabled a vote on annexing 600 acres from St. Clair and Madison Townships, with residents raising concerns that Amazon Web Services could develop another data center on that land.