Microsoft invests $1 billion into data center in northwestern Indiana

LA PORTE, Ind. (WISH) — Indiana Gov. Eric Holcomb announced Tuesday that a new Microsoft data center will be coming to northwest Indiana.

The $1 billion investment from the tech giant is expected to create up to 200 jobs in La Porte by the end of 2032, officials said in a release. The facility was also said to power the Microsoft Cloud and support “the widespread adoption of cloud computing and artificial intelligence.”

The new 245,000-square-foot center will be built on almost 500 acres at an industrial park in La Porte County and join 300 other data centers worldwide.

Holcomb said in the release that there’s much excitement in welcoming the new career opportunities to the state.

“Indiana is committed to being a central hub in the global economy of the future, and this latest announcement ensures Hoosier communities and talent will be key to widespread advancements in cloud and artificial intelligence technology, he said. “We’re excited to welcome Microsoft’s new data center to Indiana and look forward to the incredible value impact this will have on our statewide data-driven ecosystem, new career opportunities, specifically the greater northwest Indiana community.”

Parallel with Microsoft’s tech investment, the Indiana Economic Development Corporation has invested a 35-year term data center sales tax credit for a minimum $1 billion in eligible capital investment.

The release adds that “for each $1 billion of eligible investment made at the site within the first 15 years, the company will be eligible for tax exemptions for an additional 5-10-year period, up to a total term of 45 years.”

These incentives will be performance-based and state benefits can only be claimed after investments are made.

The city of La Porte approved additional incentives to support the project. The planning phase for construction and operations was set to start later in 2024.