Microsoft has not responded to a proposal from an Indiana community coalition that asks the company to commit a share of its data center costs to local needs, according to We Make Indiana. The nonpartisan group, made up of about 25 congregations and community organizations near a 900-acre Granger data center in St. Joseph County, sent the proposal in May. Microsoft told Ars Technica the proposal is part of its community listening process but that it is too early to discuss because the company is still engaging other community leaders.
We Make Indiana is seeking a binding "Fair Share Agreement" under which Microsoft would negotiate directly with residents and donate a percentage of its annual data center costs to the county each year. The group proposed an independent board to oversee payouts from a fund addressing social and environmental impacts of the $1 billion project, with contributions continuing through construction and the data center's life. It also asked Microsoft to meet higher environmental standards on water and energy use, air quality, sustainability, and workforce protections.
The coalition initially considered asking for 1 or 2 percent, estimating that even 1 percent could add roughly $30 million to $40 million annually for community programs. Instead, its proposal asks Microsoft to determine what percentage would be fair. Group leader Ryan Juskus said asking for 10 percent, the level in Pennsylvania's proposed Data Center Fair Share Act, would be very much on the high end. That bill, introduced by Democratic state Sen. Lindsey M. Williams, would require developers to enter legally binding community benefits agreements and share at least 10 percent of project costs.
The request comes amid broader scrutiny of data center incentives. An audit in Georgia found the state gave up $474 million in sales taxes in one year and got back $41 million from the industry, journalist Ronan Farrow reported. Farrow noted that by Georgia's own estimate, 70 percent of the data center construction would have happened anyway. In Indiana, Microsoft and similar firms can buy data center equipment without paying the state's 7 percent sales tax, an exemption that could apply to as much as $13.2 billion in projected purchases and last 50 years, Indy Mirror estimated.
We Make Indiana says Microsoft has approved only one-time nonprofit donations totaling up to $1 million, a figure the group considers disproportionate to the company's tax savings and improved profit margins. The group says Microsoft has prioritized educational nonprofits and a community college, set up a land trust in northwestern Indiana, and donated to hunger relief and community volunteering groups, all on its own terms. Juskus said the donations are not proportional and not ongoing. Microsoft said it remains committed to developing the Granger project in partnership with the community and that investment decisions have not yet been made.
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