Data Center Tax Deal Targets Vacant Indianapolis Mall

A proposed $5.7 million incentive for DC BLOX could pave the way for demolition of the Washington Square Mall site by 2027.

Updated on Oct. 30, 2026 in Data Centers

Data Center Tax Deal Targets Vacant Indianapolis Mall

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Do you support using tax incentive agreements with corporations to fund local redevelopment projects?

Indianapolis officials are reviewing a proposed tax incentive deal for DC BLOX that earmarks $5.7 million for the demolition of the defunct Washington Square Mall. This draft agreement would leverage developer tax savings to help clear the site for a broader $5 billion redevelopment plan.

Why it matters

The proposal addresses a long-stalled redevelopment effort by repurposing data center tax incentives toward local infrastructure cleanup. It highlights the shifting strategy of Indianapolis to use industrial growth to finance the revitalization of legacy commercial properties.

The proposed incentive package utilizes $5.7 million to offset demolition costs for the 10202 E. Washington St. site. This funding fulfills the city mandate that requires developers receiving tax breaks to commit at least 5% of those savings to community-focused neighborhood projects.

The players

DC BLOX

A data center operator that develops infrastructure for regional connectivity and high-performance computing.

BRC Commercial Properties

A real estate development firm currently leading the $5 billion redevelopment proposal for the Washington Square Mall site.

Indy Economic Development Inc.

The city-affiliated organization currently reviewing the proposed tax incentive drafts for financial feasibility.

The details

The $5.7 million fund is structured as collateral to improve the financial feasibility of tearing down the Washington Square Mall, which has remained largely vacant since 2020. The demolition aims to clear the 1974-era structure to make way for a $5 billion mixed-use redevelopment plan submitted by BRC Commercial Properties. The agreement is currently undergoing review by Indy Economic Development Inc. before it can proceed to legislative hearings.

1974: Washington Square Mall opened in Indianapolis.
2020: Major tenants including Dick's Sporting Goods and Burlington's exited the mall site.
October 22, 2026: BRC Commercial Properties unveiled a $5 billion redevelopment plan for the site.
November 2, 2026: The economic package is scheduled for introduction to the City-County Council.
November 18, 2026: The Metropolitan Development Commission is expected to review the agreement.

The Tech Race

The plan aligns with Indianapolis' requirement that developers receiving tax incentives contribute at least 5% of savings to community causes. It marks a significant shift in utilizing industrial data center investments to clear and revitalize long-dilapidated commercial sites.

Residents should track the City-County Council meeting on November 2 for the official introduction of the economic package. If approved, demolition of the long-vacant site is projected to begin by the end of 2027.

The takeaway

The proposed deal highlights how cities are increasingly leveraging data center subsidies to force the cleanup of decaying commercial real estate. Residents should monitor the Metropolitan Development Commission review scheduled for November 18 to see if the demolition timeline holds.