A Data Center Is Proposed for Kokomo. Here’s What We Know.
A proposed data center campus in northern Kokomo could generate $44 million to $55 million annually in property tax revenue once completed, according to Mayor Tyler Moore’s State of the City address. That figure deserves attention, but so do the questions that remain unanswered.
The company behind the proposal is Digital Realty, a global data center provider operating across the Americas, Europe, the Middle East, Africa and Asia Pacific. Its facilities house the computing infrastructure that supports the cloud platforms, software and AI services businesses increasingly depend on.
The proposed Kokomo campus would span approximately 476 acres in Industrial Park North, near U.S. 31 and County Road 400 North. According to the Kokomo Tribune, the project would include three buildings totaling roughly 3 million square feet, with completion anticipated in 2033. Digital Realty estimates the campus would add approximately 1 gigawatt of electrical power usage. The project remains in the proposal stage.
What about the community and environment?
Many people have reservations when it comes to data centers in their communities. Digital Realty says the campus would use water-conserving cooling systems and incorporate landscaped buffers, berms, screening, noise-reduction measures and responsible lighting. The company also says it would fund the infrastructure upgrades required for the project and coordinate with local officials and utility providers.
However, its project page does not currently specify expected water consumption or emissions.
What are the economic benefits?
Mayor Moore stated that the project would receive no property tax abatement, meaning the company would pay full property tax. Digital Realty projects tens of millions of dollars in annual property tax revenue to the county once the campus is operational, consistent with the mayor’s estimate. The sources do not say how the campus will affect utility rates, but electricity rates could possibly be affected, which residents may need to inquire about.
Construction would increase demand for electricians, HVAC technicians, equipment operators and other skilled workers. Once operational, the campus would support technical, facilities, security and maintenance positions.
Digital Realty also projects thousands of jobs across the region, although it has not provided a specific breakdown of construction, permanent or indirect employment. The company plans to collaborate with local workforce development and education partners.
Additional community benefits are expected to be outlined in an Economic Development Agreement with the City of Kokomo. Those terms have not yet been made public.
What comes next?
A project of this scale could bring substantial economic opportunities, but it also warrants transparency and careful planning.
Key questions remain: What commitments will the city agreement include? How many permanent jobs will the campus create? What will its water and electricity demands be, and how will those needs affect the surrounding community?
The Kokomo data center is just one of multiple data center developments in Indiana right now, and it signals that AI infrastructure is becoming the new future. For local businesses in these areas, it is crucial to devise ways to work with these data center developments to stay relevant and create opportunities, rather than deny the inevitable changes to come.
We think that technology infrastructure coming to our region will be positive in helping us stay competitive in the marketplace, so we’ll keep watching with interest.
References
Digital Realty. (2026). Kokomo project. https://www.digitalrealty.com/about/projects/kokomo
Shultz, C. (2026, October 1). Data center proposed: Digital Realty looks to bring three-building campus to Kokomo. Kokomo Tribune. https://www.kokomotribune.com/across_indiana/data-center-proposed-digital-realty-looks-to-bring-three-building-campus-to-kokomo/article_5385192e-23ca-4e19-a6ea-48b7a1ede68f.html