KOKOMO, Ind. —  A potential multibillion-dollar development will set the tone for how Kokomo handles its new regulations on data centers.

Digital Realty, a company operating about 360 data centers across the globe, is eyeing a 476-acre property off the corner of U.S. 31 and County Road 400 North to build a 3-million-square-foot data center campus.

The project is expected to create thousands of construction jobs and hundreds of permanent jobs while generating tens of millions of dollars in annual property tax revenue.

However, it faces strong opposition from neighbors, including Kathy Hoover.

“I think it’s a bunch of crap,” Hoover said. She lives near the proposed data center site and is planning new landscaping in front of her home to block views of and noise from the development.

“We moved to the country 40 years ago to be in the country,” Hoover said. “They already forced the new U.S. 31 on us where we can see it, and now they’re going to build industry right across the road from our house.”

On Sept. 14, the Kokomo Common Council approved new zoning regulations allowing data centers on all industrial sites. The ordinance met heavy opposition in public hearings but passed on a second reading by a 7-1 vote.

Hoover feels city leaders are opening Kokomo up to data centers with little regard for residents. Digital Realty says it wants to change that narrative.

“Kokomo helped build America’s industrial economy. And right now we have an opportunity for Kokomo to help power that next step, and that’s America’s digital economy,” Digital Realty representative Matt Gully said.

The company held an open house Oct. 10 for residents to ask questions or express concerns, which Gully said focused primarily on noise and utility usage.

“Estamos coming into Kokomo and planning to be a part of Kokomo for decades,” Gully said.

Addressing noise concerns, Gully said the data center is expected to meet the city’s 50-decibel noise restriction, which is about as loud as the hum of a refrigerator.

When it comes to water usage, the data center is set to use a closed-loop system that recycles water rather than relying on a continuous draw.

The power needs, however, are significant. Gully said that once fully built, the project is expected to require about 1.5 gigawatts of power, enough to power roughly 1.1 million homes.

Digital Realty stated it will pay for any necessary infrastructure upgrades. “We’re not asking ratepayers to carry that,” Gully said.

Ben Inskeep, program director for the consumer advocacy group Citizens Action Coalition, warned there is no guarantee.

“No statutory protections are in place to ensure Hoosier ratepayers won’t foot the bill,” Inskeep said in a statement. “Hoosiers need a data center moratorium now to protect us against more rate increases, toxic pollution, and secret backroom deals that benefit Silicon Valley and Wall Street over Hoosier families.”

A Duke Energy spokesperson could not confirm whether infrastructure upgrades will be necessary, stating the utility is continuing to work through required agreements addressing electricity.

A full site plan has not yet been submitted to the Kokomo Plan Commission or Common Council. Digital Realty said details are still being finalized. While the property does not need zoning approval, the Common Council will have to approve any economic development agreement between the company and the city. Gully said Digital Realty expects to have an agreement drafted in the coming weeks.

Digital Realty is not asking for tax abatements. Gully said the economic development agreement could include a series of commitments from the company for community investments, such as workforce programs.

The project is expected to take four to six years to complete, with total costs running from $1 billion to $3 billion. Once complete, it is projected to generate $44 million to $55 million in annual property tax revenue.

(Provided Photo/Digital Realty)

Statement from Mayor Tyler Moore

“Over the past several years, Kokomo has placed itself in a unique position to attract the highest quality developments to our community to help create the best possible environment for our citizens and business community. Having one of the industry leaders of the data center world in Digital Realty choose Kokomo to invest is evidence of this. The City of Kokomo welcomes this partnership with Digital Realty and is looking forward to how this development will benefit our community for years to come.”

– Mayor Tyler Moore, R-Kokomo