Data Center Plan Sparks Tense Town Hall Clash in Decatur Township

Clete Casper, director of real estate for data center developer Sabey Corporation, arrived at an open house at the Decatur Township School of Excellence on November 18 with the goal of convincing local residents that the company's proposed data center would be a positive addition to the area. Casper aimed to reassure the community that the estimated $4 billion project would enhance the quality of life through increased tax revenue, job creation, and economic investment.

According to documents filed with the city, Sabey is considering a 130-acre site northeast of the intersection of Kentucky Avenue and Camby Road, a few miles south of the Indianapolis International Airport, for a two-building data center campus. However, Casper faced a large and vocal crowd of more than 350 people who had gathered for a community town hall organized at the request of a local councilor.

As Casper presented the company’s track record with several operational data centers across the country, the audience grew increasingly hostile. Attendees repeatedly shouted "You're not welcome here" and "That's a lie" when Casper claimed that the data center would not increase utility bills, deplete the township's water supply, or avoid paying taxes. This kind of resistance reflects a growing trend in Indiana, where data centers are facing scrutiny as the state becomes a hub for the next wave of data center development.

Data centers, essentially large warehouses housing powerful computers, play a crucial role in supporting digital cloud services and artificial intelligence software. In Decatur Township, residents questioned why Sabey was targeting their area, echoing common "not in my backyard" sentiments seen in other communities where similar projects have failed to gain support.

"Our customers are very interested in this location, and we follow our customers," Casper said, referring to technology, health, and financial companies that rent server space for cloud services. The debate over the Decatur Township project comes on the heels of tense discussions between Franklin Township residents and Google lawyers earlier this summer over a proposed data center on 467 acres in southeastern Indianapolis. Google ultimately withdrew its proposal just before a Council vote.

Residents in Martindale-Brightwood and Pike Township are also organizing against urban data center plans for their neighborhoods. Before Tuesday’s open house, Sabey launched a website addressing misconceptions about data centers and emphasizing how the project would be "low-impact." The site claims the facility would use the same amount of water as a small office and not lead to utility rate increases.

The project would be built on land zoned for industrial use, though the city's comprehensive plan suggests mixed-use suburban development. This means Sabey only needs a variance in development standards, not a full rezoning, which could streamline the approval process. However, the company still faces the challenge of gaining community support.

Tuesday’s open house started 30 minutes late, with many attendees waiting outside the meeting room after it reached capacity. City-County Councilor Josh Bain, a Republican representing the southwest side of Marion County, spent nearly an hour at the door introducing himself to each person who arrived. He encouraged attendees to fill out a survey, promising to read every word.

Angie Cucci, a 38-year-old Decatur Township resident, attended the meeting with her mother and daughter but arrived too late to get inside. She believes the land could be better used for affordable housing, as many local residents, including herself, struggle to buy homes in the area.

Sabey likely to cash in on tax incentives

Despite community opposition, Indiana remains an attractive location for data center operators. The state passed legislation in 2019 to attract big tech companies, offering generous sales tax exemptions and real and personal property tax abatements at the municipal level. In the past, data center operators have easily secured these incentives.

In response to concerns that Sabey might avoid paying its fair share of taxes, Casper highlighted that the data center would generate billions in tax revenue compared to the less than $20,000 currently raised from undeveloped agricultural land. The company also committed to paying $5 million for infrastructure improvements in Decatur Township, aiming to address long-standing issues like road conditions and potholes.

Sabey has submitted paperwork to begin the process for a 50% real property tax abatement, according to an Indianapolis Economic Development official.

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What comes next for Decatur Township data center?

First, the variances must be heard by the city's hearing examiner, who will recommend approval or denial. The earliest possible hearing is scheduled for December 18, though the date could be delayed if a neighborhood organization recognized by the city government requests additional time to review the proposal.

Next, the nine-member Metropolitan Development Commission will vote on the request, taking into account the hearing examiner's recommendation, staff opinions, and public comments. Since the matter involves a variance request rather than a rezoning, the City-County Council will not vote on the petition, and the MDC will make the final decision.

City-County Councilors typically have the opportunity to speak before the Commission votes on petitions within their district.

Sabey has also promised to present the matter before the Decatur Township Civic Council Land Use Committee, a local liaison that can provide its own recommendation to the MDC, at a meeting on December 18.