The Indianapolis Economic Development Inc. has proposed a nearly $56 million tax incentive package for a data center in Martindale Brightwood.
In April, the Metropolitan Development Commission approved a data center project from Metrobloks, a Los Angeles based developer. The company plans to build a 13-acre data center in the historically Black Martindale Brightwood neighborhood, despite months of pushback from residents.
Data centers have been a contentious topic in Indianapolis for the past year. The Metrobloks incentives package is the first tax abatement proposal made public since city staff approved data centers in Decatur Township, Martindale Brightwood and Irvington.
The incentives package was first introduced to city officials at a July 15 MDC meeting where the commission voted to have a public hearing at its next meeting Aug. 5. After the July 15 meeting, IndyStar reported the director of the Department of Metropolitan Development would not support the tax abatements.
Here’s what to know about the incentive package ahead of MDC’s next meeting.
Upcoming meeting
Metropolitan Development Commission hearing
🗓️ 1 p.m. Aug. 5
đź“Ť City-County Building, 200 E Washington St.
Community members will have the opportunity to speak on the Metrobloks tax incentive package proposal.
So, what is a tax abatement?
A tax abatement is a type of incentive tool local governments use to decrease the amount of money a landowner pays on a redeveloped property. Local governments offer these packages to attract development.
How are these packages created?
According to city documents, Metrobloks sought an incentive package to help offset the high cost of the project and to phase in increased tax payments. The documents also say city staff believe the project “would not be economically feasible without the tax abatement incentive.”
Metrobloks worked with IEDI to negotiate the package. That group is a nonprofit created in 2025 by Mayor Joe Hogsett’s administration to attract businesses and investments to Indianapolis. IEDI recommends incentive offers that are then processed by Department of Metropolitan Development staff. The department’s commission has the power to approve or deny tax abatements. It can also request conditions be added to tax abatements.
What exactly is in the Metrobloks package?
The package IEDI recommended for Metrobloks is worth nearly $56 million and includes two abatements.
The company plans to spend about $250 million to redevelop the site in Martindale Brightwood and build the data center. One abatement would allow Metrobloks to save $13.5 million over 10 years on the real property taxes on the site.
Metrobloks also expects to spend $406 million on new equipment, such as servers and routers needed to operate the data center. Instead of paying taxes on those items, the IEDI recommends a 90% tax abatement on new equipment that would save the company $42 million over 15 years.
Metrobloks has promised community investment if the incentives are approved
City documents on the incentives package say Metrobloks is working with city officials to contribute to pedestrian improvements, affordable housing and other infrastructure projects in Martindale Brightwood.
The documents don’t say exactly how much the company would spend on those contributions. But Metrobloks has already pledged $2.5 million for affordable housing and infrastructure projects in the neighborhood. At an April 1 MDC meeting, Ernest Popescu, the CEO of Metrobloks, said the money for community infrastructure could increase to $20 million depending on how much of a tax abatement the company receives.
What happens next?
The proposal is expected to be heard by the Metropolitan Development Commission 1 p.m. Aug. 5 at the City-County Building. Community members will have the opportunity to speak on the proposal. The MDC will then vote on the package at the same meeting. The proposal will not go before the City-County Council.
Why doesn’t the DMD director support the package?
Megan Vukusich, the director of the DMD, said the department doesn’t support the Metrobloks incentive package because of City-County Council’s efforts to create a data center moratorium. If a moratorium is passed, it would not affect projects already approved by the MDC, including the Metrobloks data center.
Still, Mallory Thompson, a DMD public information officer, told Mirror Indy in an email the MDC is still expected to hear the proposal on Aug. 5. Thompson said the MDC can take Vukusich’s stance, the IEDI’s recommendation and community input into consideration during the meeting.
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Mirror Indy reporter Darian Benson covers east Indianapolis. Contact her at 317-397-7262 or darian.benson@mirrorindy.org. Follow her on X @HelloImDarian or on Bluesky @darianbenson.bsky.social.
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