Microsoft stays silent as Indiana church groups seek 1% of data center costs

Microsoft has spent this year telling US communities that when it builds a data center nearby, it intends to be a "good neighbor": paying property taxes that fund hospitals, schools, parks and libraries, and investing in "vital services the community cares about." Yet when residents ask how much money the company is actually prepared to commit, the answers rarely come.

What the coalition wants

In St. Joseph County, Indiana, a nonpartisan group called We Make Indiana, of about 25 congregations and community organisations, spent six months trying to draw Microsoft's attention to the most urgent local needs: health care, child care, elder care, transport and affordable housing. In May it sent the company a proposal for a "Fair Share Agreement". Under the plan, Microsoft would fund a community trust to offset the social and environmental impact of its $1 billion Granger data center, with an independent board deciding payouts. The group asked Microsoft to judge for itself what share of the project's annual costs would be fair; it had initially considered asking for 1 or 2 percent, which it estimated would add $30 million to $40 million a year for local programmes. The proposal also seeks binding commitments on water and energy use, air quality and worker protections.

Tax breaks and one-time gifts

We Make Indiana says the company's offers fall short: a Microsoft liaison told the group it would approve one-time nonprofit donations totalling at most $1 million. Microsoft has announced some initial grants, mostly for educational nonprofits, and set up a land trust. Residents point out that developers receive far larger benefits: exemptions in 38 states often last more than a decade. An audit in the US state of Georgia found it gave up $474 million in sales taxes in a single year and recovered only $41 million, while the state's own estimate suggests 70 percent of that construction would have happened anyway. In Indiana a 7 percent sales tax exemption can cover as much as $13.2 billion in equipment purchases and last 50 years.

Silence, and a campaign

Microsoft calls the proposal part of its community listening process but says it is too early to discuss because it is still engaging other leaders. Ryan Juskus, a leader of the group, calls the donations "completely not proportional, not ongoing" and entirely on Microsoft's terms. Nathan Taft of the advocacy group Stand.earth says towns have seen Microsoft rely on "diffusion techniques": several representatives scattered around a room while questions are written on sticky notes. We Make Indiana wants county officials to use coming negotiations over tax incentives, including a proposed TIF district, as leverage. Construction is due to start this autumn, with the site possibly operational by 2029.