Indy Council Rejects Data Center Tax Breaks

City-County Council members face a decision on $113 million in tax breaks for a proposed data center that many residents and local officials oppose. The Metropolitan and Economic Development Committee voted 11-2 on Monday to recommend the full council reject the incentives for DC Blox. The Atlanta-based company plans to build a two-building campus on the east side of Indianapolis.

The committee’s vote is not binding, and the full council will make the final decision in December. More than two dozen people spoke in council chambers, with nearly all opposing the deal. Andrea Richter-Garry, CEO of Indy Economic Development, told the committee the project would generate $58 million for the local community during the abatement period. That total includes $28 million in taxes and a $30 million pledge from the company.

Councilor Andy Nielsen, whose district borders the project site, questioned whether DC Blox would proceed without the abatements. David Armistead, the company’s senior vice president of sales, said there are no full tenant commitments for either building. He cited a court challenge to the land use approval as a reason for the uncertainty. Nielsen called the presentation unclear and speculative.

The development is planned in two phases. The first is a one-story, 70,000-square-foot building expected to be completed within two years. The second is a two-story, 250,000-square-foot building scheduled for the next five years. The project would create hundreds of temporary construction jobs and 21 permanent positions. If built as planned, DC Blox would still pay $28 million in property taxes during the abatement period.

Data centers have become a target of Indiana’s economic development strategy, but their high electricity usage complicates efforts to control utility rates. Governor Mike Braun signed a law this year to rein in utility costs. Critics argue that large-scale consumers like data centers make that goal harder to achieve. The proposed abatements include a 10-year, 50% break on real property taxes and a 10-year, 85% break on personal property taxes for high-tech equipment.

Councilor Michael-Paul Hart, who sponsored the proposals, argued the vote is about east side investment. He noted that convention centers in Noblesville and Fishers are drawing people away from Indianapolis. Hart said the city risks becoming a downtown of nothing without such investments. Residents opposed the breaks, with Sue Beecher of the Irvington Community Council stating the group voted unanimously against the abatements.

DC Blox is one of three data centers approved before the Metropolitan Development Commission temporarily banned new developments in Marion County through 2027. The other projects are a $4.3 billion development by Sabey Data Centers in Decatur Township, which received $240 million in tax breaks, and a project by Metrobloks in Martindale-Brightwood. DC Blox is also seeking state incentives, but that application is not yet complete.