Sidney council approves tax abatement for Amazon ‘megaproject’

New data center would entail an investment of about $3 billion, city expects
A new Amazon Web Services facility in New Carlisle, Ind., where the tech giant plans to build around 30 data centers, June 4, 2025. (AJ Mast/The New York Times)

Credit: NYT

Credit: NYT

A new Amazon Web Services facility in New Carlisle, Ind., where the tech giant plans to build around 30 data centers, June 4, 2025. (AJ Mast/The New York Times)

Sidney City Council recently approved a property tax abatement worth up to $350 million over three decades to pave the way for a new Amazon data center.

The 30-year abatement, with an estimated value of $180 million to $350 million, will make way for a data center expected to employ 75 people and entailing what a city document called a “significant real property investment.”

ADS (Amazon Data Services) requested from the city an abatement for a project that is to include the construction of a new building with associated site development, including parking, buffering, storm water control and more “for a total investment of approximately $3 billion,” a city council action summary said.

The center will be built north of Millcreek Road and west of VanDemark Road in Sidney.

The annual payroll for the new jobs was estimated to be $6.75 million.

City documents say abatements of 100% of the increased valuation property tax for 30 years may be reserved for “megaprojects” — developments drawing at least a $1 billion investment or a $75 million annual payroll. This project meets that criteria, documents say.

City council passed a resolution supporting the abatement Oct. 27. An income tax sharing agreement with Sidney City Schools and the Upper Valley Career Center was also approved that evening.

A group of citizens questioning and criticizing the planned data center, called “Sidney Citizens Data Center Watch,” has formed a Facebook page to monitor the project. Some have expressed concerns about local water usage, noise and environmental impact.

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