
Additional, larger Microsoft data center in LaPorte draws support
News ClipSouth Bend Tribune·LaPorte County, IN·4/20/2026
Microsoft is planning a second, larger data center in LaPorte, Indiana, on 1,200 acres, contingent on city council approval of an annexation request. The project is expected to generate significant tax revenue, though some residents express concerns about urban sprawl and environmental impacts like energy and water usage. A public hearing was held, and the city council will vote on the annexation request on May 18.
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Microsoft
Gov: LaPorte City Council, LaPorte County government, Mayor Tom Dermody, LaPorte Schools
Microsoft has unveiled plans for a second, larger data center in LaPorte, Indiana, spanning 1,200 acres adjacent to an existing facility already under construction. This expansion, which could include 11 new data center buildings, is dependent on the LaPorte City Council approving a request to annex the farmland property into the city. A public hearing for the annexation drew a large crowd, with a council vote scheduled for May 18.
Local officials, including Mayor Tom Dermody and Councilman Tim Franke, strongly support the project, citing the significant property tax revenue expected. Franke highlighted the tens of millions of dollars annually projected from the initial 20-year agreement, which will benefit the city, schools, and LaPorte County, the latter being included in the new revenue-sharing agreement. LaPorte Schools Superintendent Dr. Sandra Wood believes the high-tech jobs, estimated at 200 for the first center plus 50 more per expansion building, will help reverse student enrollment declines.
Microsoft's land development manager, Mike Stockwell, clarified that plans are subject to change but noted tree clearing and groundwork have begun at the first site, with building construction commencing in the fall. Addressing environmental concerns, Microsoft stated the data centers would use a closed-loop system for water recycling, with minimal municipal water consumption. NIPSCO Director Rick Kalinski assured that Microsoft would bear the entire cost of its energy demand, preventing cost-shifting to existing customers. Noise from backup diesel generators, running approximately 15 hours annually, is also expected to be minimal.
Despite the economic benefits, some residents, like James Baum, voiced opposition, characterizing the project as unwelcome urban sprawl in what is currently an unincorporated area. Microsoft also announced a public open house for the project on April 21 at the LaPorte Civic Auditorium.