Laporte Microsoft Data Center Begins Construction
Microsoft has commenced construction on a new $1 billion data center in LaPorte, Indiana, following a recent groundbreaking ceremony. The project will unfold in phases over ten years, eventually hosting 17 structures and employing over 600 full-time staff, with an eventual target of 2,000 construction workers daily. The development is anticipated to generate unprecedented tax revenue for the city and local school corporation.
The City of LaPorte, Indiana, is preparing for a significant influx of construction workers as Microsoft officially begins building a major data center complex. A groundbreaking ceremony was held for the over $1 billion investment on a 500-acre site on Boyd Boulevard, where grading has been underway for weeks. Microsoft Corporate Vice President Bo Wallace stated that the goal is to begin operating three buildings by 2029, with three more to follow quickly. The initial phase will require over 600 full-time employees.
Further expansion plans include 11 more data center structures on an adjacent 1,300 acres of farmland Microsoft is acquiring, with the entire construction process expected to take up to ten years. Once fully operational, the site is projected to employ more than 2,000 construction workers daily. LaPorte Economic Advancement Partnership Executive Director Bert Cook noted that local businesses have been alerted to prepare for increased customer traffic.
While Microsoft decided against seeking tax abatement nationwide for its data center projects this year, the LaPorte development will still yield substantial financial benefits. LaPorte Mayor Tom Dermody highlighted that the first completed site alone will generate tens of millions annually for the city and millions for the school corporation through a 20-year agreement. Property taxes from the second site will also benefit the city, school corporation, and county government under a separate agreement. These new tax dollars are considered unprecedented for LaPorte, with Mayor Dermody calling the groundbreaking a defining moment for the community's future.
Microsoft, through Vice Chair and President Brad Smith, also plans to partner with the school corporation to offer high school classes designed to prepare students for the high-tech jobs at the data center complex. This initiative aims to provide well-paying opportunities and encourage students to remain in the area. Additionally, the city is set to receive $17 million from Microsoft for over 100 acres of municipally owned land included in the 1,300-acre purchase. This revenue is expected to provide financial stability for the school corporation, which had faced revenue losses from enrollment declines and considered a property tax increase.