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Council member: Microsoft won't seek tax break for data center

About 200 Granger residents opposed to a planned data center on farmland packed into a St. Pius Church community room Thursday night.
WVPE/Jeff Parrott
Granger residents packed into a meeting at St. Pius Church in 2024 to raise questions and voice their opposition to Microsoft's request to rezone farmland for a data center. The St. Joseph County Council later approved the rezoning.

A St. Joseph County Council member says that unlike Amazon, Microsoft will not seek a property tax break when it builds its data center near Granger.

Republican Council Member Amy Drake voted against the tax breaks that Amazon received because she felt the county was too generous in that case.

Regarding Microsoft, Drake says she and some Granger residents who had opposed their rezoning in 2024 met with company representatives Friday. She says Microsoft agreed not to seek a property tax abatement to build their data center northeast of Capital Avenue and Cleveland Road.

”I think county taxpayers are going to be really happy to hear this," Drake says. "Personally I think people get really resentful when they hear that big tech companies are getting these huge tax breaks and they’re paying higher and higher tax bills.”

County leaders are negotiating a development agreement with Microsoft. As for the other tool often used in big development projects, forming a tax incremental financing, or TIF, district, Drake says she hasn’t yet made up her mind on whether she would support that.

A TIF district captures new property taxes the company pays and uses the money to develop infrastructure in the immediate area instead of sending it to the county’s general fund.

Parrott, a longtime public radio fan, came to WVPE in 2023 with over 25 years of journalism experience at newspapers in Indiana and Michigan, including 13 years at The South Bend Tribune. In his free time he enjoys pickleball, golf and spoiling his dog Bailey, who is a great girl.