Indianapolis Data Center Deal Targets Mall Demolition

A proposed tax incentive agreement allocates $5.7 million to clear the site of the long-dilapidated Washington Square Mall.

Updated on Oct. 30, 2026 in Data Centers

Indianapolis Data Center Deal Targets Mall Demolition

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

A new tax incentive agreement with DC BLOX includes $5.7 million for the demolition of the Washington Square Mall site. This funding is intended to support the redevelopment of the property, which opened in 1974 and has seen significant vacancies since 2020.

Why it matters

The fund serves as collateral to improve the financial feasibility of demolishing the long-stalled and dilapidated shopping center. City policy requires that developers receiving tax savings must contribute at least 5% of those savings toward neighborhood causes.

The agreement includes a $5.7 million earmark for the demolition of the Washington Square Mall, located at 10202 E. Washington St. The proposal is currently a draft document under review by Indy Economic Development Inc.

The players

DC BLOX

This company received approval in 2026 to build a two-building data center at 305 Fintail Drive in Indianapolis.

BRC Commercial Properties

This firm has a purchase agreement for the mall site and proposed a $5 billion redevelopment plan.

Indy Economic Development Inc.

This agency is currently reviewing the draft tax incentive agreement to determine its financial feasibility.

The details

BRC Commercial Properties, which has an agreement to purchase the mall site from Durga Properties LLC, unveiled a $5 billion redevelopment plan on October 22. This initiative follows the 2026 approval for DC BLOX to construct a two-building data center at 305 Fintail Drive.

Washington Square Mall was built in 1974.
Major retailers exited the mall site in 2020.
BRC unveiled a $5 billion redevelopment plan on October 22, 2026.
The economic package is scheduled for introduction to the City-County Council on November 2, 2026.

The Tech Race

This project follows the city's 5% community contribution policy, which mandates that developers receiving tax incentives must reinvest a portion of their savings into local neighborhood causes. The agreement demonstrates how municipalities are leveraging data center tax breaks to solve urban blight.

The demolition of the long-vacant mall aims to transform the local area by facilitating the $5 billion redevelopment project. Residents may see progress toward replacing the dilapidated structure if the City-County Council approves the incentive package.

The takeaway

The proposed incentive agreement bridges the gap between high-tech infrastructure growth and local urban renewal efforts. By tying demolition funding to development tax breaks, the city aims to clear stagnant commercial sites while securing community investments.