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Google’s plan to develop a $1 billion-plus data center in Franklin Township was bolstered by a city commission’s vote Wednesday to grant preliminary approval to the company’s request to rezone nearly 470 acres for the project.
The Metropolitan Development Commission’s 8-1 vote to advance the plans followed more than an hour of presentations and public comment on the project by Google representatives, city officials and neighborhood residents.
The vote came less than 24 hours after the California-based technology giant on Tuesday confirmed its involvement in the project. In a statement, Google ended several months of speculation and conjecture on the identity of Deep Meadow Ventures LLC, a holding company being used in public dealings on the data center efforts.
The project would occupy a 467.6-acre site generally bounded by South Post Road to the west, Davis Road to the east, Troy Avenue to the north and Interstate 74 and Vandergriff Road to the south. Construction could start by the end of this year.
Wednesday’s vote advances a rezoning of the property to be designated as C-S, or a special commercial district, which allows for the development of data centers. The land is largely undeveloped and currently used for agriculture, but five of the 13 parcels have a mix of single-family dwellings and agricultural accessory structures.
Final approval for the rezoning must come from the City-County Council.
Plenty of pushback
As has been the case with other proposed data centers around the state, the Franklin Township project has drawn significant pushback from local residents.
For this particular project, the residents call their effort Protect Franklin Township, with an estimated 75 people attending the MDC meeting presenting themselves as remonstrators—some displaying signs expressing opposition to the development.
Google has agreed to 35 commitments requested by the Franklin Township Civic League and the city’s Department of Metropolitan Development to secure each entity’s support for the project. Those include building height and noise limitations, as well as those related to sewage and other utilities. Staff with the city’s Department of Metropolitan Development also supported the rezone request.
Julie Goldsberry, leader of Protect Franklin Township, said significant issues still remain with the project.
”Marion County should pause and create thoughtful regulations to protect residents from these extractive, non-tax paying, low-job creating projects to ensure that the interests of Marion County and its townships are protected,” she said. ”Approving this … will set a dangerous precedent for further development in Franklin Township and Marion County. It adds insult to injury for neighbors, who would already suffer many inconveniences and it’s too much to ask.”
Goldsberry said her group would continue to fight the development.
“We’re disappointed, however, we obviously have not had time to regroup and discuss next steps, but there will be some,” she said. “I would be remiss to try to say what those are at this stage, but we are not done and we are not giving up. Nonetheless, we are, of course, disappointed.”
According to plans, the site would be able to accommodate up to four buildings, with the first expected to be completed by late 2030. It will employ up to 50 people. Initial plans for the project indicate the facility could employ up to 400 once the campus is fully developed.
About 12 people spoke in opposition to the project, including City-County Councilor Michael Paul Hart, who represents the area. Several others also provided letters of opposition.
“I’ve talked to everybody that is at the table for this conversation and made sure to hear everybody thoroughly,” said Hart. “I cannot support this proposal at all. We should not be locking up one of the largest remaining land opportunities in Franklin Township for a project that offers limited jobs, reduced tax benefits and long-term restrictions on infrastructure. We must do better for our residents, our schools and the future of the district.”
The company’s legal representative, Barnes & Thornburg attorney Joe Calderon, presented for about 20 minutes, followed by about 10 minutes of questions.
Google representatives declined to comment after the vote.
Abatement requests moving forward
The commission also introduced a request to consider a 10-year property tax abatement for the first building planned for the complex, which has an estimated cost of $314 million.
Total estimated costs for the first phase of the campus total $914 million, including an investment of $600 million for equipment to power the facility. The abatement must still be considered by the commission and presented for a public hearing on Oct. 1.
If approved, Google would see its estimated property tax bill of $5.4 million over 10 years halved to $2.7 million. The company has committed to paying at least $1 million in property taxes per year for 40 years.
That concession includes a five-year commitment to make a supplemental payment of at least $730,000–even if it exceeds the tax liability—that could be used for community-oriented projects in Franklin Township.
The $1 million commitment is expected to start upon occupancy of the building. That threshold would likely only be exceeded if additional structures are built. The nine-figure investment in the first building is expected to increase the tax base by about $21 million in assessed value, according to the city.
Google would pay about $21.6 million in real property taxes on the first building over a 40-year period, according to city documents.
The company is also in the early stages of requesting a complete personal property tax exemption for 40 years, which would apply to an estimated $600 million in equipment for the data center’s operation.
The company plans to spend $75 million on personal property during the data center’s first year of construction, another $187 million in the second, $113 million in the third and $225 million in the fourth, ahead of the facility’s opening.
The Indiana Economic Development Corp., which code-named the development “Project Flo” in June, approved a data-center specific tax credit valued at about $42 million over 35 years.
The credit, which was also approved for three other data center projects in the state, could be extended by up to 15 additional years if the company meets its minimum planned investment of about $1 billion.
Disclosure was important
Google’s decision to disclose its identity ahead of the meeting was key to keeping the rezoning request on the table.
John Dillon, president of the commission, told company representatives during a meeting ahead of the 1 p.m. hearing that there “would not have been a meeting” to discuss the company’s plans had they not done so.
He confirmed to IBJ following that meeting that he would have pulled the requests from the docket because he felt the public deserved to know who was backing the project before it was considered.
Before the company confirmed its involvement, both WFYI and IndyStar, both citing public records, reported Google was behind the data center project.
Jim Schellinger, CEO of Indy Economic Development Inc., said his group is supporting the project, although he said the approach taken by Google to move its plans forward left much to be desired.
“I think all the things you shouldn’t do have been done on this process,” he said, noting the water concerns and an initial lack of transparency from Google, among other issues. “I think that if I had a magic wand, I just tell everybody to start over. I’ve been here, I’ve done that, but I haven’t seen anything quite like this.”
Schellinger, a former state secretary of commerce, said if Google had been willing to identify itself earlier in the process, it would have likely had an easier road.
But, he said, the development is still one worth pursuing, both economically and for the impact it will have on the city and state’s growing technology sector.
“It is a technology that we need to do things that help our lives, that help us to exist—cutting edge technology that, if the questions [about the viability of the project] get answered,” he said, “and they get answered to everybody’s satisfaction, just might take an area like Franklin Township and put us on the map as somebody that was the first to do something really great.”
IBJ reporter Susan Orr contributed to this story.
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Doesn’t matter how many different articles IBJ writes to split this story and keep the public comments away, this is still a bad deal for Franklin Township, Marion County, Central Indiana, and the State of Indiana. Few jobs, lots of environmental issues, and little property tax revenue (even if Google does pony up the $1M annually discussed in another article). Mr. Dillon’s dad is spinning in his grave…I’m sure he can’t imagine his son supporting such blatant corporate give aways…
a tech center? Please…they’re building a big warehouse in which to operate networked computers. And that will need to be powered by a new electrical generating source, which will likely lead to serious environmental impacts as they figure out where to get the cooling water, where to dispose of the heated water, and how to control the various bacteria that grow in that heated water. And I suspect that bacteria will just be discharged into the ground water or a local creek, to feed a local stream, to feed the White River. As we all know, there’s nothing the White River needs more than additional source points of pollution and bacterial infection.
I agree there’s a little benefit to these data center projects. Aside from the initial construction there’s very very few jobs beyond that. They’re usually relatively low paying. Meanwhile, they consume enormous amounts of energy, which, never mind the environmental impact those significant, but who bears the cost of ramping up generating facilities sufficient to power them? The answer is the every day consumer of electrical power.
Agreed, glad to see Councilor Hart representing his district well in opposition. Hopefully, he will call it up to council for a vote.
These data centers are paying 10x or more for land acquisition. Absolutely don’t see need for any property tax abatement. These developers want these data centers at just about any coat. Energy consumption major problem. Indiana is pulling plug on solar.
This is a good project for Indianapolis. I hope it gets passed
I’m curious, Brian, how this is a good project for Indy? What benefit does it bring? How will Indy, and Franklin Township in particular, be a better place to live because of this and other similar projects? I’m open to being educated on this, because right now I see this as a massive burden on the impacted communities.
I base this, in part, on speaking with a friend who lives and works in a state that doesn’t support these projects. He and his company are presently working on how to process the hot/warm water discharge to kill off the bacteria that flourish in that water before it is discharged. They’re not having a lot of success yet. Until that issue is worked out by someone, we’re talking about lots of bacteria-infested water being discharged into ground water or local waterways. I’m not sure of the impact, but I fear a return to Fall Creek before the Feds required Indy to clean up that open sewer.
Tim, you should attend the CC Council meeting and speak about the water and bacterial issues, no one else will, in fact it will be avoided by Google and city staff.
Massive mistake. This has literally zero economic upside for the region and will raise out taxes and power bills to provide a dozen jobs.
This might even be a negative economic impact long term if the promise of AI replacing jobs comes true. Less working hoosiers equals less tax income.
“the facility could employ up to 400 once the campus is fully developed ‘ – So realistically about 150 jobs.
IF they can find 150 people willing to clean such a place…and by the way, that’s for the entire campus…this building is to employ about 50. and not be fully employed unti 2030. Other buildings to follow won’t be in place until much later…
Another scam. Yes, they’ll build it somewhere. Let’s send them a map with someplace like Southern Illinois highlighted.
These data centers are unlikely to be bad neighbors – if they pay their fair share of electric and water needs – but I don’t think there’s enough good (jobs and economic impact) to warrant the significant tax abatement.