Indiana Group Seeks Binding Deal With Microsoft Over Data Center
We Make Indiana wants Microsoft to commit annual donations tied to its $1 billion Granger data center, as tax break debates grow nationwide.
Microsoft has spent years promoting a "good neighbor" image around its data centers. In Indiana, a community coalition wants more than a campaign.
We Make Indiana, a nonpartisan group of about 25 congregations and community organizations, sent Microsoft a proposal in May for a binding "Fair Share Agreement." The deal would have Microsoft donate a portion of its data center costs to St. Joseph County annually.
The stakes are large. Microsoft's Granger data center is valued at $1 billion and sits on 900 acres. Indiana offers a sales tax exemption on data center equipment that can last 50 years, and it could apply to as much as $13.2 billion in projected equipment purchases.
Microsoft's response so far is limited: it will only approve one-time nonprofit donations totaling up to $1 million for the Granger community. The company says its employee charitable donations reached $229 million across 29,000 nonprofits in 2024.
The dispute reflects a broader fight. Data center developers receive tax breaks in 38 states, often lasting over a decade. A Georgia audit found the state gave up $474 million in sales taxes in one year and got back $41 million from the industry, as reported by arstechnica.com.
Quick answers
What is We Make Indiana asking Microsoft for?
The group sent Microsoft a proposal in May for a binding "Fair Share Agreement" that would have the company donate a portion of its data center costs to St. Joseph County annually.
How much has Microsoft offered the Granger community?
Microsoft will only approve one-time nonprofit donations totaling up to $1 million for the Granger community.
How large is Microsoft's Granger data center?
It is valued at $1 billion and sits on 900 acres.