The governor Eric J. Holcomb announced today that Microsoft will invest $1.000 billion to establish a new data center in northwest Indiana. The new facility, which will create up to 200 new jobs by the end of 2032 in La Porte, will accelerate cloud computing infrastructure to support global technology and artificial intelligence growth.
“Indiana is committed to being a key center in the global economy of the future, and this latest announcement ensures that Hoosier communities and talents will be crucial to widespread advancements in cloud technology and artificial intelligence,” said Governor Holcomb. “As a state, we have built a pro-growth business climate and implemented a future-focused framework to attract significant investments in high-tech, high-growth sectors. We are excited to welcome Microsoft’s new data center to Indiana and look forward to the incredible impact this will have on our state-level data ecosystem and the creation of new professional opportunities, specifically in the northwest Indiana community.”
Microsoft, headquartered in Redmond, Washington, will build a new 245,000 square foot data center on 489 acres in the Radius Industrial Park in La Porte. The campus will help power Microsoft’s cloud and support next-level digital transformation driven by widespread adoption of cloud computing and artificial intelligence (AI). The La Porte facility will join the company’s global cloud computing infrastructure network, which features over 60 Azure regions, over 300 data centers, over 280,000 kilometers of network, and over 190 edge sites.
To support its growth in Indiana, Microsoft plans to hire a variety of positions, including critical environment engineers, IT technicians and managers, inventory and asset technicians and managers, security personnel, and site managers. The timeline for the construction and operation of the new data center depends on design, planning, and permitting processes, which will begin in cooperation with the City of La Porte later this year.
“Microsoft is excited to expand our data center infrastructure in Indiana, with our first campus to be built in La Porte,” said Bowen Wallace, Corporate Vice President of Microsoft Data Centers, Americas Region. “We appreciate the collaboration with the State, the City, and the La Porte Economic Advancement Association that has made this opportunity possible. We look forward to a lasting and mutually beneficial relationship with Indiana and the City of La Porte as we build and scale our data center infrastructure to support our customers and partners.”
Microsoft is committed to the responsible operation of its data centers, considering their environmental impact on local communities. The company has four main sustainability goals: being carbon negative and eliminating its historical carbon emissions by 2050; being water positive and replenishing more water than it uses; being zero waste in its direct operations; and protecting more land than it uses by 2025.
“Projects like this happen once in a lifetime, and their effects are felt forever,” said La Porte Mayor Tom Dermody. “What makes this even better is that we can work with the talented, community-minded team at Microsoft. From the outset of this project, they have been committed and attentive to the needs of our community. We are incredibly excited to welcome them here and look forward to a strong and lasting collaboration in the future.”
The city of La Porte approved additional incentives to support the project. NIPSCO offered additional incentives.
“Providing safe, reliable, and affordable energy to the communities we serve is NIPSCO’s mission, and we have been working closely with Microsoft on plans to meet the energy needs of the new data center in the city of La Porte,” said Vince Parisi, President and Chief Operating Officer of NIPSCO. “This economic development project will deliver sustained long-term benefits to the northwest Indiana region, and we are proud to support these efforts.”
Today’s news marks the fourth major announcement of strategically located data centers in Indiana in 2024. Together, these Fortune 500 companies have planned to invest $14.800 billion in cloud computing and storage infrastructure in communities and regions across Indiana, creating 1.500 new jobs in Fort Wayne, Jeffersonville, La Porte, and New Carlisle.
Based on the company’s investment plans, the Indiana Economic Development Corporation (IEDC) committed an investment in Microsoft in the form of a 35-year data center sales tax credit for a minimum capital investment of $1.000 billion. For every $1.000 billion in eligible investment made on-site within the first 15 years, the company will be eligible for tax exemptions for an additional 5 to 10 years, up to a total term of 45 years. These incentives are performance-based, meaning the company is eligible to claim state benefits once investments are made.