Microsoft faces pressure from the community group We Make Indiana regarding the company's data center project in Granger. The group, representing 25 congregations and organizations, argues that the company's current one-time donations, capped at $1 million, are insufficient compared to the scale of the $1 billion facility.
The group proposed a Fair Share Agreement, suggesting Microsoft contribute a percentage of its annual data center costs to a community fund. While the group initially considered asking for 1 to 2 percent, they noted that a 1 percent share could generate $30 to 40 million annually for local programs. Microsoft has not yet engaged in formal negotiations regarding this proposal.
Critics point to significant tax exemptions granted to data center developers. In Indiana, Microsoft may avoid a 7 percent sales tax on up to $13.2 billion in equipment purchases, an exemption that can last 50 years. Similar tax breaks in Georgia resulted in $474 million in lost sales tax revenue in a single year, with the state recovering only $41 million.
Legislative efforts are emerging to address these concerns. A bill in Pennsylvania, the Data Center Fair Share Act, proposes requiring developers to share at least 10 percent of total project costs with community funds. Meanwhile, Microsoft maintains that it is in the early stages of development and that investment decisions have not been finalized.
