Indy development commission approves Decatur Township data center plan, advancing Sabey’s southwest Indianapolis campus proposal

What was approved and what happens next

The Metropolitan Development Commission has approved a land-use package clearing a key local hurdle for a proposed data center campus in Decatur Township on Indianapolis’ southwest side, near Kentucky Avenue and Camby Road. The action advances plans for a large, multi-building technology site after months of neighborhood pushback and public hearings.

The approval centers on allowing a “data center technology park” on property zoned I-2, a classification where the city determined data centers are not expressly listed as permitted uses. City planning documents show that the project moved forward through a combination of a variance of use and variances of development standards, along with modifications to previously recorded commitments tied to a 2020 approval for the broader technology park concept on the site.

Project scale and site commitments

The petition materials describe a two-building campus of roughly 1 million square feet, with mechanical yards and utility infrastructure typical of data center operations. The commitments and staff conditions described in the city’s packet address buffering, lighting, and generator-related operations, including restrictions on generator testing during evening and overnight hours and requirements for substantial transitional yards along portions of the site perimeter.

The plans also include on-site features associated with large industrial campuses, including loading areas, short-term truck parking, landscaping and screening, and public-infrastructure elements such as sidewalks and street dedications.

Why the approvals were required under Indianapolis zoning

City planning documentation reflects an “unlisted land use interpretation” issued in late 2025 stating that a data center is not identified as a permitted use in the applicable zoning use table. Under that interpretation, authorization of the use required either a variance of use through the Board of Zoning Appeals process or a rezoning to a different district. The case proceeded through the variance and commitments modification pathway.

Community concerns and the debate around impacts

Decatur Township residents have raised concerns throughout the review process about potential impacts on nearby neighborhoods, including noise, visual effects from large buildings and equipment yards, air emissions from backup generators during testing or outages, and the broader question of how major electricity users could affect local infrastructure planning.

Supporters of the project have emphasized capital investment, construction activity, and the role of data centers in supporting digital services, while arguing that buffering and operating commitments can mitigate land-use conflicts near residential areas.

Key points at a glance

• Location: Decatur Township, near Kentucky Avenue and Camby Road on Indianapolis’ southwest side.
• Developer: Sabey Data Center Properties, LLC.
• Scope described in filings: roughly 1 million square feet across two buildings with associated utility and mechanical infrastructure.
• Regulatory pathway: modification of commitments plus variances of use and development standards.

With the commission’s decision, the proposal moves from land-use eligibility toward subsequent permitting and infrastructure coordination steps required before construction activity can begin.

Public agencies involved in later stages typically include departments responsible for permitting, engineering reviews, and utility coordination. Separate state-level regulatory processes may apply to certain electric-utility investments tied to serving large new loads.