Digital Realty makes promises about data center as 450 acres face rezoning, annexation
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The City of Kokomo is restocking its shelves with industrial land. On Oct. 26, the Kokomo Common Council voted to rezone and annex nearly 450 acres of farm and residential land on the city’s northeast side, paving the way for investment, possibly involving more data centers.
The council held a public hearing before considering six ordinances related to the development, all of which were in their first reading and which carried favorable recommendations from the Kokomo Plan Commission. But the public held a less than favorable view of the actions.
Council president Greg Davis set the ground rules for the hearing, limiting public comment to three minutes per speaker, save for representatives of Digital Realty, who were given unlimited time to explain their position. Local Realtor Paul Wyman was the primary advocate for the company.
Wyman opened the presentation with a retelling of the city’s development history, as he has done at all of the meetings involving the data center, explaining that the area targeted for rezoning and annexation long has been destined for industrial growth. He then vouched for Digital Realty and how it will interact with the community.
“They truly are what I would call a corporate citizen in our community,” said Wyman. “And just as I would call Stellantis an incredible corporate citizen, and I would call Star Plus Energy an incredible corporate citizen, I can assure you from my experience with Digital Realty, they are the same corporate citizen in the communities that they’re in.”
Wyman then gave way to Digital Realty representatives, who attempted to ease minds about their impending arrival and how it will affect the community.
“We believe that our proposed investment at Industrial Park North can help position Kokomo for the next generation of the digital economy,” said Matt Gully, Digital realty’s director of public affairs. “We also recognize that an investment of this size comes with questions and responsibilities. Our commitment is to be a good neighbor and a long-term partner to Kokomo.
“That means listening to residents, being transparent, working with local leaders and community organizations, creating opportunities for local workers and businesses, and designing this project in a way that respects the people who live around it.
“We know trust isn’t built through a presentation or a promise. It’s built over time by showing up, answering the tough questions, and doing what we say we’re going to do. That’s the approach that we intend to take here.
“We’re excited about the opportunity to invest in Kokomo, but just as importantly, we’re excited about the opportunity to become part of this community for decades to come.”
Gully was followed by Matt Scholtes, Digital Realty’s site selection director. He explained that the proposed data center is roughly 18 months away from being able to break ground. Its servers will be contained in three buildings, with the ancillary equipment that support operations surrounding them.
But more importantly, he disclosed the company’s intent as it pertains to utility consumption. Stories abound nationally about the strain data centers have placed on communities’ electrical and water utilities, resulting in rate increases for residents. Sholtes claimed such a scenario will not take place in Kokomo.
“Digital Realty has already pledged and signed the National Ratepayer Protection Pledge Act of 2026, which covers 100 percent of our own power generation,” said Scholtes. “Constituents and communities will not see their electricity rate raise on behalf of data centers coming to their town.
“We build and pay for our own infrastructure, work with the existing trades and utilities to build substations, switch stations, lines over and above ground, and that doesn’t become a burden to local taxes.”
Scholtes stressed that Digital Realty will use air-cooled chillers in its Kokomo development, meaning it will require a single, large draw of more than 4 million gallon of water, but then will use less than 15,000 gallons a year
“The most water that we will use at these data centers will actually be in our kitchenettes and our bathrooms,” said Scholtes.
When it comes to noise pollution, Scholtes again proposed that Digital Realty will not be a detriment to the community, pledging to abide by Kokomo’s 50-decibel sustained noise limit.
“When you stand across the street from a data center, the most noise you’ll hear is probably the traffic going by, rather than our equipment on the roofs, and certainly not the generators,” said Scholtes. “The generators only run a half hour to an hour a month, simply for testing, and they’re all enclosed in a very isolated noise attenuation system that would limit noise should they come on for any period of time.”
Schultes also claimed that Digital Realty has worked with the Northern Virginia Community College to develop educational programming to help train people to work in their data centers. The company expects to employ up to 4,000 construction workers over five to eight years, along with a couple hundred permanent jobs once the project is online.
Additionally, Digital Realty’s Chicago-area operations draw approximately 1,000 people a week from other companies that rent out server space. This was disclosed to city council members and Mayor Tyler Moore when they visited facilities there in early October. That translates into significant revenue for the local service and food industry
“If we do have a large tenant, that can really impact their workforce and bring even more not only data center jobs, but the ancillary jobs that come with those, whether it’s logistics, whether it’s IT, or some of those other things that don’t necessarily mean you need to be on site at the data center,” said Schultes.
The Digital Realty representative went even further, hinting at other areas the company may be able to benefit the community without making specific commitments.
“We can come into the community and meet some needs that you were looking for, whether it’s fire protection training, EMS, things that we’ve supported not just in Northern Virginia but all across the United States.”
With the presentation finished, the remonstrators were given the floor, and they came with questions, criticisms, and a fair bit of anger. Resident Richard Huffer, who was undecided on the issue and was seeking information, asked how the projected property tax revenue was calculated and wondered what happens if Digital Realty decides not to complete the project. He also asked if the city intended to implement a Tax Increment Financing (TIF) district to capture and redistribute those dollars.
“How would that affect property tax revenue distributed to schools and to other taxing units?” asked Huffer. “If this is all put in a TIF, that changes the ball game. Who’s going to get that money?”
He also asked the question that was foremost on the minds of those in the audience: What will become of the land being rezoned and annexed at the meeting? The Digital Realty team was given the opportunity to respond to the questions afterward, and Wyman spoke on its behalf.
“Is it going to be a TIF district? Well, that’s a city decision that you all (the council) will decide,” said Wyman. “You’ll determine how those taxes come in and are best utilized.”
Wyman cited the words of Mayor Moore when he made the announcement of the impending data center at the end of September. At that time, Moore stated his intent to share 15 percent of the property tax revenue with all five county schools; about $6 million a year, or $1.2 million each.
“All of that will be spelled out in an economic development agreement,” said Wyman. “That will be a public record that will be brought before you all here at the city council, and the public will have a chance to review that.”
Many of the remonstrators focused more on how city government communicated with the public on the issue, citing repeated denials and deflections that came from the mayor and the council members over the course of 2026.
“I feel like some of the council members have been less than honest in regard to what’s going on, specifically you, Mr. (councilman Matt) Grecu,” said resident Candace Staton. “I know you went and toured their data center September 9, 10, and 11. That was not transparent. You pretty much told me I was full of it when I said data center. All of us. That’s kind of dishonest, and now we don’t trust you. I personally don’t trust you.”
The lack of information was not limited to local residents. Thomas Sharp related a conversation he had with U.S. Rep. Victoria Spartz when she visited Greentown last week. When told about the impending data center, she didn’t react positively.
“She actually laughed out loud when we told her that you and our lying mayor are bringing a 1.5 gigawatt data center to Howard County,” said Sharp. “She actually said, ‘That’s quite foolish, and it shouldn’t happen. They will never have enough power. Hopefully, the state will shut it down.’
“Those were her words. But that leaves us holding the bag if this project is never completed.”
Resident Ann Ihms, an environmental champion who specializes in water quality, expressed grave concerns about the energy demands of the data center and how they dwarf anything Kokomo has ever required.
“One gigawatt; that’s 1.3 million homes,” said Ihms. “This one facility is going to be using a lot of power. We lost power three times this year already in our facility. You know how that hurts small businesses? It’s terrible. I know they said they’re going to try to upgrade the grid and all that, but Duke hasn’t done it in all these years. It’s going to affect all of us. It’s going to affect us in a major way.”
In what became a refreshing reprieve from the data center debate, retired school teacher Bonnie Fisher stepped to the microphone and began asking about how local government works when it comes to the common council.
She first asked why people who speak at the meeting are required to give their addresses and what is done with that information. Rather than answer the question, council attorney Corbin King said that he would meet with her privately to answer her questions, perhaps over lunch. While Fisher seemed open to the prospect, she continued to ask questions.
“When did you last, or ever, as the case may be, hold a meeting with a group of constituents?” asked Fisher. “Not at the council meeting, but you, as individuals, have you ever had a meeting with constituents in your district? And if so, when?”
Council members Davis, Crystal Sanburn, Jeff Plough, and Dave Capshaw all stated that they have had many one-on-one conversations with constituents. None, however, have held meetings with large groups.
“There are two kinds of interactions, as I see it,” said Fisher. “One is as a group, and one is individual. They’re both important. They’re both valid, but neither can substitute for the other.”
Responding to the concerns of the remonstrators, Davis explained why he is supporting the data center development, along with the expansion of industrial ground within the city limits.
“I believe we need income in this city,” said Davis. “We need to thrive. We need to do a lot of things. We need streets. We need police officers. We need fire trucks. We need so much. We did this for purpose to bring businesses to Kokomo, and it happens that this company has stepped up to say ‘We’re interested in that.’ That’s what it’s all about.”
Following the public hearing, the council entered its regular session, passing a resolution to transfer funds within city department, and then considering the salary ordinances for city employees and for elected officials. Both of those ordinances passed unanimously, providing raises for all employees and a one-percent increase for elected officials.
It then was time to consider the rezoning and annexation of the parcels slated for industrial development. Those measures passed 8-1 on roll call votes, with Councilman Bob Stephenson voting against the measures. Stephenson asked to explain his vote during the proceedings.
“I have a big problem with us annexing and then rezoning at the same time,” said Stephenson. “I think we are giving up our responsibility to these people out here to see these things come before us one at a time.
“We all want new businesses, but we’re just going to blanket this, and and we’ve seen how that works out.”
Davis bristled at Stephenson’s reasoning and admonished him for the timing of his statement.
“You get the right to speak your piece and how you feel,” said Davis. “It would have been nice, as a council, to hear that before tonight.”
Councilman Tom Miklik followed up, levelling his own criticism at Stephenson.
“I have asked and tried to elicit conversation with Councilman Stephenson,” said Miklik. “I have not heard one word from Councilman Stephenson about this issue.”
However, Davis, Miklik, and rest of the council have heard this objection before. On March 9, when the first round of annexation and rezoning took place to set the stage for the data center’s arrival, Stephenson voiced this same concern, both in the council’s informational meeting and on the floor.
“I prefer to see these projects come forward individually for both annexation and rezoning, so they would come before this council one at a time,” said Stephenson at that time. “Once they’re out of here, and you guys all know this, they’ll never come back before us unless there’s an abatement.
“It’ll go before the city planning commission, which is an appointed board. I have sat and watched them be told over and over, if something is zoned correctly, they are obligated to pass things. It really takes the opportunity away from everybody here and all of us. I would rather we not abdicate our responsibility and we take these one at a time as they bring these projects forward.”
As was the case on March 9, the council dismissed Stephenson’s objection and passed all of the ordinances, setting them up for a second reading at its next meeting on Nov. 9.