Shopping Mall Will Become Data Center

An Indiana storage provider plans to spend $23 million to convert a vacant Indianapolis shopping center into a data center complex. Lifeline Data Centers, LLC will purchase the former Eastgate Consumer Mall in Indianapolis and convert into a mixed-use facility combining office space and a data center. Lifeline is a colocation provider based in Carmel, Indiana.

Eastgate is a 370,000 square foot shopping center built in 1957 that fell into decline around 2000 and was closed in 2004 when the owner couldn’t pay back taxes. The site fell into disrepair and at one point appeared likely to be demolished.

This marks the second project this year in which a data center service provider has bought a defunct shopping center. In August Rackspace Managed Hosting said it would invest $100 million to convert a vacant San Antonio shopping mall into its headquarters, and plans to add 4,000 new employees over the next five years. The Windsor Park Mall has 750,000 square feet of space.

Lifeline bought the Eastgate property from Dallas investors JTL Capital, who bought the mall in 2005 when it was already empty. “We believe our investment is good for the Eastside, good for the city and good for the state,” said Alex Carroll, co-owner and President of Lifeline. “This data center will put Indianapolis on the map as an ideal technology location for Indiana businesses and companies worldwide.”

Because the former Eastgate property is located within the Eastside Revitalization District (ERD), Lifeline will be eligible for a five-year tax abatement worth approximately $1.4 million. The revitalization district allows for partial tax abatement for a minimum of five years on vacant properties larger than 60,000 square feet.

“Together, the City of Indianapolis and Eastside community leaders have made tremendous progress in bringing business and investment back to the East Washington Street corridor,” said Indianapolis Mayor Bart Mayor Peterson. “Eastgate has always been a challenge in this vision for a revitalized Eastside, but this major commitment by Lifeline will open the floodgates for more investment and even greater progress.”

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About the Author

Rich Miller is the founder and editor at large of Data Center Knowledge, and has been reporting on the data center sector since 2000. He has tracked the growing impact of high-density computing on the power and cooling of data centers, and the resulting push for improved energy efficiency in these facilities.