La Porte marked a major milestone in its emergence as a technology and digital infrastructure hub on June 17 as Microsoft, city officials, and education leaders celebrated the groundbreaking of a $1 billion expansion of the company’s data center campus.
Located along Highway 35 between Boyd Boulevard and County Road 250 in Pleasant Township, the project occupies an expanded site stretching between East 250 South, East State Road 4, and Stevens Road.
Jobs
The project will initially add six data center buildings, with plans to expand the site into a 17-building campus that will create more than 200 jobs and support Microsoft’s growing cloud computing and artificial intelligence operations. Microsoft began site preparation in March 2026 and will continue construction of the first three buildings through the end of 2027. The company plans to complete the initial data centers in 2029.
Speaking at the groundbreaking ceremony, Mayor Tom Dermody described the project as a defining moment for the community.
“Some moments define the future of a community—today’s groundbreaking is one of those,” Dermody said. “This is a day that generations of La Porte residents will look back on and remember when a global leader chose to invest in our city, our people, and our future.”
Microsoft executives highlighted the strong collaboration between the company and local stakeholders that helped bring the project to fruition.
“We’re here because of the exceptional engagement, collaboration, vision, leadership, and support of Mayor Dermody, city staff, our partners, and the people who share our vision for responsible and sustainable growth rooted in Microsoft’s community-first principles,” said Bo Wallace, Corporate Vice President of Microsoft Datacenters for the Americas Region.
Local economic development leaders also emphasized the significance of the investment. Bert Cook, executive director of the La Porte Economic Advancement Partnership (LEAP), called the partnership between Microsoft and the city “historic, transformational, and unprecedented.”
Revised tax agreement
The groundbreaking follows a recently revised tax agreement under which Microsoft will pay its full share of property taxes to the city. Fifteen percent of those tax revenues will be directed to the La Porte Community School Corporation. Creating a long-term funding source for local education programs.
Superintendent Dr. Sandra Wood said the partnership provides greater financial stability and opportunities for students.
“What this partnership represents for us is stability—the stability to plan beyond a single budget cycle and invest in programs and pathways that change what students believe is possible for their own future,” Wood said.
Microsoft’s expansion in La Porte
Microsoft’s expansion in La Porte builds on its original commitment announced in 2024, when the company unveiled plans for a 245,000-square-foot data center on 489 acres at Radius Industrial Park, establishing its first major footprint in Northwest Indiana.
The company’s presence grew significantly in May 2026 when the La Porte Common Council unanimously approved a land annexation that nearly tripled the size of the planned campus. The expansion added roughly 1,200 acres east of the original site. Creating room for 11 additional data center buildings that are expected to be developed after completion of the first phase.
The project also aligns with Microsoft’s broader sustainability strategy. The company has committed to becoming carbon negative by 2030 and removing its historical carbon emissions by 2050. While pursuing water-positive operations, achieving zero waste across direct operations, and protecting more land than it uses.
Looking ahead, the $1 billion project will help transform La Porte into a leading digital infrastructure hub while becoming one of the largest technology investments in Northwest Indiana.
Additionally, the La Porte project reflects a broader wave of data center expansion across the country. In Las Vegas, Switch recently received Clark County approval for a major expansion of its AI-focused data center campus as demand for cloud and artificial intelligence infrastructure continues to accelerate.
Project Factsheet: Microsoft La Porte Data Center Expansion
Location: La Porte, Indiana
Developer: Microsoft
Investment Value: $1 billion
Groundbreaking: June 17, 2026
Initial Development: 6 data center buildings
Planned Full Buildout: 17 data center buildings
Construction Start: Site preparation began March 2026
First Phase Construction: Through 2027
Expected Completion: 2029
Campus Expansion: Approximately 1,200 additional acres approved in 2026
Projected Jobs: More than 200 by 2032
Key Roles: Critical environment engineers, IT technicians, security personnel, and site managers
Primary Purpose: Cloud computing and artificial intelligence infrastructure
Education Benefit: 15% of property tax revenues allocated to the La Porte Community School Corporation
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