Update: Sept. 1, 2026: Mirror Indy first published the following article Aug. 19 using financial documents provided by Indianapolis. The city subsequently updated those documents with more accurate numbers. We’ve updated our story to reflect that.
Indy Economic Development has outlined nearly $188 million tax abatements for a proposed data center in Decatur Township.
In March, city officials approved a 130-acre rezoning for Seattle-based Sabey Data Centers on the southwest side of Indianapolis to allow for a two-building data center campus at 6400 Kentucky Ave.
The breakdown
Here’s how the investments and tax abatements are broken down.
Sabey and its tenant plan to invest $4.3 billion in property and equipment purchases, which would be one of Indy’s largest private investments, according to city documents. In return, the city’s economic nonprofit has recommended more than $49 million in real estate property tax savings over a 10-year period.
Sabey hasn’t announced which company would work from the facilities. Sabey is expected to save more than $36 million taxes on equipment purchases over 15 years. The tenant would save around $103 million over the same period.
Where would the money go?
Sabey would still pay about $33.1 million over 10 years in real estate property taxes and $15.4 million over 15 years for property taxes on the equipment. In addition to taxes paid to Marion County, about $21.9 million would go to Decatur Township schools and $2.2 million would go to the Indianapolis Public Library.
Additionally, Sabey has agreed to pay the city at least $29.8 million to support infrastructure upgrades in Decatur Township.
The money would pay for $5 million of road improvements to areas outside of the Sabey construction zone and $24.8 million for a new aquatic center, according to Andrea Richter‑Garry, president of the Indy Economic Development. The money would be distributed over a 10 year period.
A location for the aquatic center would be chosen with community input.
There’s also an option for Sabey to pay an additional $10 million in the future to capture any value increases on the technology.
The project is expected to create 25 full-time construction jobs and 100 to 300 third-party subcontractor construction positions. Long-term, there would be about 75 full-time positions once the buildings are complete in 2031.
Still, not everyone has bought into the idea.
Many Decatur Township residents fear the data center project will endanger their health, safety and property values. Seven Decatur Township residents filed a judicial review this spring to stop the data center buildout. A virtual hearing with lawyers from each side is set for Aug. 20.
What’s next
The Metropolitan Development Commission is expected to discuss Sabey’s incentive package at 1 p.m. Sept. 16 at the City-County Building, 200 E. Washington St.
Want to keep up with data centers? Indy Documenters often cover these meetings. 📝 Read their notes.
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Mirror Indy reporter Elizabeth Gabriel covers the south side of Marion County. Contact her at elizabeth.gabriel@mirrorindy.org. Follow her on X at @_elizabethgabs.
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