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Sabey Data Centers
Source: Sabey Data Centers

INDIANAPOLIS — A 900,000-square-foot data center project has been approved for southwest Decatur Township.

On Wednesday, the Indianapolis Metropolitan Development Commission agreed to the plans of constructing a $4 billion data center along Kentucky Avenue and Camby Road on the southwest side of the city.

The data campus would be built on 130 acres of land zoned I-2 (light industrial) and will house 250 megawatt facilities. The land was previously zoned for retail spaces and warehouses.

Sabey, the company behind the proposal and based out of Washington, can now move toward development. The Indianapolis City-County Council does not review variances since no rezoning process is required.

Sabey said the facilities will utilize a closed-loop cooling system that will feature one million gallons of water. They also believe the data campus will help create hundreds of long-term jobs and be a boost to the local economy over time.

Dozens of residents showed up to Wednesday night’s meeting in Indianapolis to express their displeasure about the campus being in their neighborhood. They’re concerned about the potential environmental impacts, rate hikes for energy, and health risks.

One person called the commission’s decision to formally approve a land use variance related to the project, “a slap in the face.”

Mark Smith said Sabey does not want to be a good neighbor.

“Why are they sneaking it in the back door on a variance change on the zoning?” he asked.

Plenty of other residents and nearby coalitions said they will continue to fight against this effort.

Sabey has plans to introduce 200-foot buffer zones along residential property lines as a way to alleviate environmental and property concerns. They want to start their site preparation sometime this year, with the first building completed by 2028.

Along with the $4 billion investment for the data center, Sabey also said they intend to provide $5 million in the form of community improvements and $20 million in projected tax revenues.

Jon Hooker, president of the Central Indiana Building and Construction Trades Council, said they’re excited about what the project can do for the construction industry and the city of Indianapolis.

“I think for us in the construction industry, these jobs, what we know about data centers is that it’s not just about the initial buildout, the technology is changing so much,” Hooker said. “We’re finding construction workers are on the project for an extended amount of time and those projects are good for our members.”

Multiple data centers have been proposed or are planned to be built elsewhere in Indiana.