Microsoft makes a $1 billion investment in a northwest Indiana data facility

La Porte, Indiana – Northwest Indiana will welcome a new Microsoft data center, according to a Tuesday announcement made by Indiana Governor Eric Holcomb.

According to a press release from the company, the $1 billion investment from the IT giant is anticipated to generate up to 200 employees in La Porte by the end of 2032. Additionally, it was stated that the building supports “the widespread adoption of cloud computing and artificial intelligence” and powers the Microsoft Cloud.

Situated in an industrial park in La Porte County, the new 245,000-square-foot facility will be constructed on over 500 acres, joining 300 other data centers across the globe.

In the press release, Holcomb expressed how excited people are to welcome the new job prospects 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.”

In addition to Microsoft’s technological contribution, the Indiana Economic Development Corporation has contributed a 35-year data center sales tax credit, provided that qualifying capital investments totaling at least $1 billion are made.

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

The state will only be able to claim advantages from these performance-based incentives once investments have been made.

To support the project, the municipality of La Porte authorized additional incentives. Later in 2024, the planning stage for operations and construction was scheduled to begin.