Meta picks Indiana for $800M data center campus

Dive Brief:

  • Meta shared plans Thursday to build a new $800 million data center campus in Jeffersonville, Indiana, according to a release from the Indiana Economic Development Corp. 
  • The project falls under a data center sales tax exemption, according to the IEDC. Under the terms of the deal, if Meta invests at least $800 million into the data center, the company will not pay sales tax for 35 years, with further incentives that could extend its sales tax exemption.
  • New York City-based Turner Construction will start on the 700,000-square-foot facility this month, according to the contractor. Meta expects the campus to be operational by 2026, according to the IEDC release.

Dive Insight:

The near-$1 billion build follows a series of other massive data center projects — at least some of which have also been sweetened by tax breaks — in the U.S. for Meta Platforms, the Menlo, California-based company formerly known as Facebook. 

Its $800 million data center project in Kansas City, Missouri, for example, qualified to receive up to nearly $1.8 billion in sales and use tax exemptions over the next 15 years, according to the Missouri Department of Economic Development. 

The tech conglomerate also plans to build a $1 billion data center campus in Mesa, Arizona, as well as another $800 million data center site in Temple, Texas.

It also marks the latest win for Indiana, which has snared several high-profile projects recently due to the state’s infrastructure resources, labor availability and growing technology and semiconductor sectors.

Billion-dollar advanced manufacturing projects in the state include a $3.5 billion Samsung SDI plant in New Carlisle, a $3.2 billion Stellantis EV plant in Kokomo and a $1.6 billion Eli Lilly facility in Lebanon. In total, Indiana welcomed in 2023 more than $28.7 billion in planned capital investment from businesses committing to locate or grow in the Hoosier State, according to the IEDC.

“River Ridge has been saving this 619-acre site for a mega company, and Meta’s investment and commitment to our community are proof that this strategy is paying off,” said Jeffersonville Mayor Mike Moore, referring to the River Ridge Commerce Center where the data center will be located, in the release. “The economic activity around this new data center will support every sector of our economy.”

The tech giant plans for the campus to achieve LEED Gold certification once operational, according to the release, and be supported by 100% renewable energy.

In addition to the initial 35-year tax incentive, for each additional $800 million Meta invests, it can extend its tax exemption for another five years, up to a total of 50 years, according to the release.

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