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Sabey Data Centers Wins Tax Incentives for a $4.0B–$4.25B, 250MW Campus in Indianapolis

Sabey Data Centers Wins Tax Incentives for a $4.0B–$4.25B, 250MW Campus in Indianapolis

Sep 20, 20264 min readBy Matthew Taksa

Sabey Data Centers, a Seattle-based data center developer and operator, secured a roughly $240 million tax incentive package from the Indianapolis Metropolitan Development Commission on September 16, 2026, for a two-building, 250MW campus on a 130-acre site at 6400 Kentucky Avenue in Decatur Township, on the southwest side of Marion County, Indiana. The approval was first reported by the Indianapolis Star and covered by WFYI, Mirror Indy, and Indy Economic Development.

What was approved

The Metropolitan Development Commission first approved zoning for the campus in March 2026, then confirmed the incentive structure in September. The package includes a 10-year real property tax abatement on land and improvements and a 15-year personal property tax abatement on equipment, totaling approximately $240 million in tax relief. Sabey also committed to at least $29.8 million in community contributions for Decatur Township, covering road and infrastructure upgrades, school support, and library funding, with a potential ceiling of $39.8 million.

DetailFiled figure
Buildings2
Site area~130 acres
Total floor area~1,000,000 sq ft
Total capacity250MW
Total capital investment$4.0B–$4.25B
Real property improvements~$2.1B
Personal property and infrastructure~$401.8M
Tenant IT equipment~$1.75B–$2.0B
Tax abatement value~$240M
Community commitments$29.8M–$39.8M
Construction startQ2 2027
Phased occupancyQ4 2029 through 2035

The campus will require a new electrical substation and transmission infrastructure. No named tenant has been publicly identified; the project is planned as a speculative multi-tenant colocation facility.

Who Sabey Data Centers is

Sabey is a Seattle-headquartered developer and operator with a portfolio of large-scale data center campuses. The company builds and operates both single-tenant and multi-tenant facilities, and the Indianapolis campus is structured as a speculative colocation project designed to attract enterprise and hyperscale tenants as the campus phases into service. City economic development materials characterize the project as one of Indianapolis's largest investments to date.

Why Indianapolis, and why now

  • •
    Primary hyperscale markets are tightening. Northern Virginia, Phoenix, and Dallas are contending with power and capacity constraints, pushing developers to examine Midwest markets with available land and grid headroom.
  • •
    Indianapolis sits inside a moratorium carve-out. The Marion County City-County Council adopted a data center moratorium on August 10, 2026, but explicitly exempted the Sabey campus and two other already-approved large projects. That exemption gives Sabey a protected development window unavailable to future entrants in the county.
  • •
    The city moved fast on incentives. Zoning approval came in March 2026 and the incentive package followed in September 2026, a compressed timeline that signals strong municipal appetite for the investment.
  • •
    Scale matches the city's ambitions. At $4.0B–$4.25B in total capital investment, the campus is cited by city officials as one of the largest in Indianapolis history, giving both sides motivation to close quickly.
🔑Key takeaway

Indianapolis's moratorium, paradoxically, creates one of the more stable multi-year data center construction pipelines in the Midwest by capping new competition while locking in a handful of large, fully approved campuses.

The moratorium's labor market effect

The moratorium carve-out is the single most consequential detail for anyone staffing this project. Because the Marion County council has effectively closed the county to new data center approvals, the Sabey campus and its two exempt peers face less local competition for high-voltage electrical, mechanical, and civil contractors than a market where dozens of projects start simultaneously. That concentration of approved work on a small number of sites gives Sabey unusual predictability in securing local and regional construction labor across the 2027–2035 buildout window.

Decatur Township sits on the far southwest side of Indianapolis, within reach of the full metropolitan trades base, including electricians, pipefitters, and operating engineers with backgrounds in automotive, pharmaceutical, and distribution facilities. Surrounding exurban counties add craft labor capacity beyond what the urban core alone can supply. Still, mission-critical commissioning and operations talent is in an early scaling phase across the region. Indianapolis is not yet a mature hyperscale cluster; DC Blox in Warren Township and Metrobloks in Martindale-Brightwood represent a small group of large projects that are among the first of their kind here, and specialized data center operations roles will require recruitment beyond local boundaries.

What it means for the region's labor market

A 250MW, two-building campus phased over roughly eight years is not a single hiring event; it is a sustained demand signal for trades, commissioning engineers, and permanent operations staff across nearly a decade. The 2027 construction start gives contractors and workforce developers a defined ramp point. For business leaders with roles to fill on this campus or on competing projects in the region, we break down roles, pay ranges, and where the talent is in our guide to hiring data center talent in Indianapolis, Marion County.

Sources: the Indianapolis Star, which first reported the incentive approval, with additional coverage from WFYI, Mirror Indy, Indy Economic Development, and Capdex.

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