Sabey Data Centers Proposes $4.25 Billion Data Center Campus in Indianapolis' Decatur Township

Sabey Data Centers has outlined plans for a $4.25 billion data center campus in Decatur Township, Indianapolis, detailing a package of community investments, employment commitments, and projected tax contributions tied to the proposed development at 6400 Kentucky Avenue.

The campus, which would span roughly 130 acres on the far southwest side of Indianapolis near the intersection of Kentucky Avenue and Camby Road, calls for two data center buildings totaling approximately one million square feet. Construction is expected to begin in the second quarter of 2027, with phased occupancy projected from the fourth quarter of 2029 through 2035.

Project Scale and Capital Investment

Sabey Data Centers is framing the Decatur Township campus as a $4.25 billion taxable capital investment, broken into approximately $2.1 billion in real property improvements, $401.8 million in personal property and infrastructure, and $1.75 billion in tenant IT equipment. The site, currently zoned I-2 industrial, had previously been entitled for up to six warehouse buildings totaling roughly 1.2 million square feet; Sabey's proposal replaces that program with two data center buildings featuring extensive setbacks and landscaping.

Building A is designed as a single-story facility of approximately 572,000 square feet, while Building B is planned as a two-story structure with a footprint of approximately 490,000 square feet, each rising to roughly 50 feet in height. The campus would also include a dedicated 10-acre electrical substation and new transmission infrastructure designed to support approximately 250 megawatts of data center capacity at full build-out. Sabey has stated it will pay 100 percent of allocated substation and transmission costs, with no incremental cost passed to local ratepayers.

On the environmental and operational side, the campus is designed with a closed-loop cooling system that recirculates rather than consumes water, enforceable noise limits at the property line, full-cutoff exterior lighting, and backup generators intended for use only during outages and brief scheduled tests.

Tax Contributions and Abatement

During the abatement period, Sabey's campus is projected to rank as Marion County's ninth-highest taxpayer, rising to second-highest once the abatement concludes. The company projects $21.9 million in tax contributions to Decatur Township public schools during the abatement period and $221 million over 30 years. The Marion County Library system is projected to receive $2.2 million during the abatement and $22 million over 30 years.

The project is being considered alongside a tax abatement package from the city. Sabey has presented before the Metropolitan Development Commission as part of the approval process.

Jobs and Labor Commitments

At full employment, the campus is projected to support 75 full-time permanent positions carrying an average annual wage of at least $104,000, or 125 percent of Marion County's average annual wage, whichever is higher at the time of job creation. Sabey has also executed an agreement with local unions to use union labor for construction and ongoing maintenance of the project.

Community Investments

As part of its community commitments, Sabey Data Centers has pledged $5 million for road improvements specifically within Decatur Township and $25 million toward a new aquatic center in the township. City leaders and the company have pointed to these amenities and infrastructure upgrades as central to the case for the abatement package.

"Indianapolis is a strategic addition to Sabey's national platform, with the infrastructure, skilled workforce and business environment needed to support a long-term investment of this scale," said Clete Casper, Director of Real Estate at Sabey Data Centers. "We are approaching this project not only as a developer and operator, but as a future neighbor with a responsibility to invest in the community alongside our facilities."

"We appreciated the opportunity to meet with the Metropolitan Development Commission and discuss the project directly," said Tim Mirick, President of Sabey Data Centers. "Our plan pairs secure, reliable digital infrastructure with high-wage employment, local union construction and meaningful investments in roads and recreation that can benefit Decatur Township for years to come."

Market Context

The proposed campus would position Indianapolis as a significant Midwestern node within Sabey's national data center platform. The company cited the region's utility infrastructure, available industrial land with appropriate zoning, and skilled workforce as factors in its decision to pursue the site. The project is structured as a multi-tenant colocation campus rather than a single-tenant hyperscale facility.

The legal notice for zoning and abatement petitions covers multiple parcels along Kentucky Avenue and Camby Road in Council District 21, reflecting a multi-parcel land assemblage underlying the roughly 130-acre site.

Sources

Sabey Data Centers — Community Commitments Announcement