Indianapolis Council Committee: DC Blox Data Center Tax Break Rejected

The Metropolitan and Economic Development Committee voted 11 to 2 on Monday to recommend that the full City-County Council reject approximately 113 million dollars in tax incentives for DC Blox. The Atlanta-based developer previously secured approval to construct a two-building data center campus on the east side of Indianapolis.

The committee’s recommendation is advisory. The full council must separately approve the tax abatements and is expected to take a final vote in December. During the public comment period in council chambers, more than two dozen residents spoke, with nearly all opposing the deal.

Andrea Richter-Garry, CEO of Indy Economic Development, told the committee the project would generate roughly 58 million dollars for the local community during the abatement period. This figure includes an estimated 28 million dollars in taxes and a 30 million dollar pledge by DC Blox for local improvements.

David Armistead, senior vice president of sales at DC Blox, stated that the company has not fully committed to building the 1.8 billion dollar project at 305 Fintail Drive. He noted that a court challenge to the land use approval currently stands, and the company lacks full tenant commitments for either building. The development is planned in two phases: a 70,000-square-foot one-story building within two years, followed by a 250,000-square-foot two-story structure within five years.

The proposed incentives include a 10-year, 50 percent break on real property taxes and a 10-year, 85 percent break on personal property taxes for high-tech equipment. If built as planned, DC Blox would still pay approximately 28 million dollars in property taxes. The 30 million dollar community pledge includes park upgrades, a fire station, and 5.7 million dollars for the redevelopment of Washington Square Mall.

Councilor Andy Nielsen, whose district borders the site, voted to reject the plan. He described the project presentation as unclear and speculative. Councilor Michael-Paul Hart, who sponsored the proposals, defended the vote as an investment in the east side, arguing that the city must compete with suburbs like Noblesville and Fishers to retain residents.

DC Blox is one of three data centers approved in the city before the Metropolitan Development Commission imposed a temporary ban on new developments in Marion County through 2027. The other approved projects include a 4.3 billion dollar facility in Decatur Township that received 240 million dollars in tax breaks in September, and a project by Metrobloks in Martindale-Brightwood.