Microsoft‘s planned data center campus in Granger, Indiana, is progressing through site preparation and regulatory reviews, with county officials approving a groundwater dewatering plan and state regulators reviewing a separate air permit application for the development. The latest developments add to a series of infrastructure agreements supporting the six-building campus, planned across approximately 929 acres in St. Joseph County.
The St. Joseph County Drainage Board approved the dewatering plan on November 2, allowing groundwater to be pumped from the development site and discharged into nearby Willow Creek and Juday Creek. According to the application, the system could discharge water at a maximum rate of 200,000 gallons per hour, with three wells expected to operate at different times between mid-December 2026 and early April 2027.
The wells will not operate simultaneously, and the total volume of groundwater expected to be removed has not been disclosed. The approval addresses groundwater removal associated with construction and infrastructure work rather than the campus’s eventual operational water supply.
The plan has raised concerns among nearby residents about possible effects on private wells, groundwater levels and water quality. Monitoring equipment is expected to be installed around neighboring wells to track water levels during the operation. However, details about monitoring frequency, baseline measurements and procedures for responding to significant changes remain important questions as the work approaches.
Indiana Reviews Microsoft’s Air Permit Application
Alongside the drainage approval, the Indiana Department of Environmental Management (IDEM) has opened a public comment period for Microsoft’s proposed data center facility.
In a notice published October 26, IDEM disclosed that it had received an application from Microsoft EKI Campus, located at 12501 Cleveland Road in Granger, for a new-source construction and Federally Enforceable State Operating Permit (FESOP). The application carries permit number F 141-50527-00655 and covers the construction and operation of a new stationary data center.
The application concerns equipment that will emit regulated air pollutants. IDEM’s preliminary assessment indicates that potential emissions would remain below the applicable major-source thresholds under federal air-quality regulations. The agency has prepared a draft permit and supporting documents, but authorization has not yet been finalized.
The public comment period runs through November 25, 2026. Interested parties can submit comments on the proposed equipment and its air-pollution implications, as well as request a public hearing. IDEM will consider submissions before deciding whether to issue or deny the permit.
The application provides another indication of the equipment and environmental requirements being addressed before the campus becomes operational. However, the publicly available notice does not establish the number or capacity of backup generators or provide a complete emissions profile.
Six Data Center Buildings Planned Across Former St. Joe Farm
Microsoft acquired the former St. Joe Farm property in May 2024 for approximately $77.5 million. The 929-acre site is located near Cleveland Road and Bittersweet Road in Granger and was rezoned for industrial development in May 2024, following a 6–3 vote by the St. Joseph County Council.
The development plan calls for six data center buildings, with several hundred acres reserved for green space. County officials have estimated that the completed campus could support approximately 300 permanent jobs, excluding temporary employment during construction.
Microsoft’s community materials published in May 2026 outlined site preparation beginning in June, followed by vertical building construction in late 2026 or early 2027. The first three buildings were targeted for completion in mid-to-late 2029, subject to permitting and construction progress.
The latest dewatering approval represents another step in preparing the site and extending the infrastructure needed to support the campus.
$65 Million-Plus Infrastructure Program Supports the Campus
The data center is also driving a substantial expansion of water, sewer and transportation infrastructure in St. Joseph County.
In March 2026, Microsoft, St. Joseph County and the City of Mishawaka approved an initial agreement covering preliminary engineering, design and other pre-development work. Microsoft’s contribution to this phase was capped at approximately $12.6 million.
A second memorandum of understanding approved on October 6 covers additional infrastructure work, including water and sewer extensions and improvements to surrounding roads.
The second agreement has been reported at approximately $53 million to $55 million, bringing the combined infrastructure commitments to more than $65 million. The precise amount should be distinguished from the wider estimates reported during the approval process.
One of the projects involves extending Mishawaka’s water lines north along Bittersweet Road, between Day Road and Cleveland Road. County officials have been advancing an initial construction package estimated at approximately $6 million. The county is managing the work, with the completed infrastructure expected to be transferred to Mishawaka for ownership and operation.
The wider infrastructure program also includes road improvements, such as widening Cleveland Road and adding turn lanes along Bittersweet Road. Microsoft has separately committed approximately $2 million toward nearby road work.
These improvements are intended to support the data center while extending municipal utility services into a wider development corridor, potentially benefiting surrounding properties and residents.
Closed-Loop Cooling System Separates Operational Water Use From Dewatering
Water management is one of the most closely watched aspects of the Granger development, particularly because the campus is being built near residential properties that rely on private wells.
According to information shared by St. Joseph County, Microsoft plans to cap the three existing wells on the property and use Mishawaka municipal water for domestic purposes. The company has also described a closed-loop cooling arrangement in which specially prepared cooling fluid would be transported to the facility from outside St. Joseph County.
The fluid would circulate through the cooling system for approximately two years before being transported elsewhere for treatment and reuse. The arrangement is intended to reduce the need for continuous water consumption in server cooling compared with conventional systems.
The distinction is important because the newly approved dewatering operation addresses temporary groundwater removal associated with construction and utility work. It is not the campus’s operational cooling-water supply.
Although the proposed cooling approach provides a clearer picture of Microsoft’s water-management plans, the facility’s projected annual domestic water consumption and total cooling-fluid requirements have not been publicly established.
Electricity Requirements Remain an Outstanding Question
Electricity infrastructure is another major component of the development, but the campus’s eventual power demand has not been publicly confirmed.
St. Joseph County has said Microsoft will pay for the electrical infrastructure upgrades required to serve the facility, with American Electric Power (AEP) involved in the work. However, available project materials do not establish the campus’s total electricity requirement, the capacity of any new substations or the precise transmission upgrades needed.
With six buildings planned, electricity infrastructure will be central to the campus’s ability to support Microsoft’s data center operations. However, assigning a megawatt capacity without a verified utility filing or company disclosure would be premature.
The employment outlook is more clearly defined. County officials estimate approximately 300 permanent positions across the six buildings. Microsoft has also discussed workforce training partnerships involving Penn High School and Ivy Tech Community College to prepare local residents for data center-related jobs.
With site preparation advancing, the latest drainage approval and IDEM’s draft air permit review mark two additional steps in Microsoft’s Granger development. The next milestones include completion of utility extensions, the outcome of the air permit review and progress toward vertical construction, while questions surrounding groundwater monitoring and the campus’s eventual electricity demand remain unresolved.
In northwest Louisiana, Amazon’s $18 billion data center expansion across three campuses reflects the same rapid growth in large-scale computing infrastructure. The project is expected to create up to 750 direct jobs and 1,784 indirect jobs, while requiring substantial new water and electricity infrastructure. Its development also highlights a key issue emerging across the sector: how utilities and local governments can accommodate major data-center investments while ensuring that infrastructure costs and economic benefits are fairly distributed.
Microsoft Granger Data Center Campus: Project Factsheet
- Developer and intended operator: Microsoft
- Location: Granger, St. Joseph County, Indiana
- Site: Former St. Joe Farm
- Site area: Approximately 929 acres
- Land acquisition cost: $77.5 million
- Planned facilities: Six data center buildings
- Permanent employment: Approximately 300 jobs
- Initial infrastructure agreement: Up to $12.6 million
- Second infrastructure agreement: Reported at approximately $53 million–$55 million
- Road improvement commitment: Approximately $2 million
- Dewatering discharge capacity: Up to 200,000 gallons per hour
- Discharge destinations: Willow Creek and Juday Creek
- Cooling system: Planned closed-loop system
- First three buildings: Targeted for completion in mid-to-late 2029
- Total project investment: Not publicly confirmed
- Electricity capacity: Not publicly confirmed
Leave a Reply