Data center developer discusses multi-billion dollar project planned in Kokomo
Digital Realty plans a $1B-$3B data center campus in Kokomo, Indiana, on a 476-acre site. The project, expected to create thousands of jobs and generate $44M-$55M in annual property tax revenue, faces local opposition but has city council approval. Digital Realty addresses concerns about noise and water usage, and will pay for infrastructure upgrades. The project may take 4-6 years to complete.
How this was made
The 30-second read
Why it matters
The announcement introduces a sizable capital project with significant utility demand, raising questions about financing, ratepayer impact, and community response.
Market read
First report of a major data center development by a US‑listed REIT, offering new information for investors monitoring REIT growth and infrastructure demand.
What to watch
Potential incentives from local government and long‑term lease commitments could improve the project's economics.
Background
Digital Realty, a leading global data center REIT, is seeking to develop a multi‑billion‑dollar campus in Kokomo, Indiana, following new zoning approvals.
Ticker impact
Digital Realty announced a planned 3‑million‑sq‑ft data center campus in Kokomo, Indiana, with costs $1‑3 B and a 1.5 GW power requirement.
potential modest downside as investors assess financing and utility risk, with upside if the project secures favorable terms.
The announcement is a new, material development for Digital Realty, but financial details are limited and the impact depends on regulatory and financing outcomes.
Market effects
Highlights growing demand for large‑scale data center capacity, potentially benefiting the broader REIT and infrastructure sectors.
May influence Indiana local utilities and construction firms, but limited direct effect on broader markets.
Reflects continued expansion of the global data center market, a trend of interest to investors worldwide.
Counterpoint
The project's high power needs could attract regulatory scrutiny and community opposition, weighing on Digital Realty's valuation.
Key entities
- CompanyDigital Realty
Global data center REIT planning a new campus in Kokomo.
- GovernmentKokomo Common Council
Approved zoning changes allowing data centers on industrial sites.
