A new deal over a Microsoft data center project could mean more money for the LaPorte Community School Corporation.
Under a 2024 agreement, Microsoft would have paid up to $100 million over 40 years to the city’s redevelopment commission and the school corporation, in exchange for a 100-percent abatement on personal property taxes. Under a new agreement approved by the city and the school board this week, Microsoft will now pay its full share of taxes, with 15 percent set aside for the school corporation for 20 years.
While the exact dollar amount is unknown, school superintendent Sandra Wood says it will be “significantly more lucrative.” “The revised structure is significantly more favorable to the district and establishes a dedicated revenue stream of a magnitude that is, to my knowledge, unprecedented for a public school corporation in our state,” Wood told the school board Tuesday.
The change stems from Microsoft’s announcement in January that it wouldn’t seek local tax breaks or utility deals on new projects. During Tuesday’s board of works meeting, Mayor Tom Dermody said Microsoft has been an “unbelievable partner,” and the city has rejected proposals from other tech companies that weren’t as beneficial.
“We want a true partner that our residents deserve, and Microsoft has met that bill,” Dermody said.
He added that the company has agreed to truck water in and out of the site, and the city has been in contact with the Indiana Utility Regulatory Commission to make sure NIPSCO customers don’t have to cover the cost of the increased electrical demand.
Board of works member Mark Kosior felt Microsoft has been responsive to residents’ concerns. “There are no perfect decisions, right? There are no perfect options. Every decision we make, every business that comes into our community or doesn’t come in, it all has tradeoffs,” Kosior noted.
Site work on the LaPorte data center is expected to start in April. Depending on the construction schedule, the school corporation could start to see some of the new revenue in 2028, with significant amounts of new revenue starting in 2029.
The school corporation also plans to partner with Ivy Tech to launch a Microsoft Datacenter Academy, to help prepare students for data center jobs.
