Home/Deal Room/Microsoft breaks ground on $1B La Porte data-center campus

Data centers · Evidence brief

Microsoft breaks ground on $1B La Porte data-center campus

Microsoft + City of La Porte + La Porte Community School Corporation

Near-primary sourcePress release only2026-06-18
Deal structureHyperscale data-center campus construction / AI cloud infrastructure
GeographyLa Porte, Indiana / Northwest Indiana
Infrastructure layersData centers + cloud capacity + cooling + power infrastructure
Disclosed scale$1B Northwest Indiana data-center investment; first-phase La Porte campus on 489 acres with a 245,000-square-foot facility, six initial data centers and a substation, thousands of construction jobs, more than 600 permanent Microsoft jobs in phase one, and completion of the first three buildings expected in 2029

Why it matters

The strategic read

Adds Microsoft's Northwest Indiana buildout to the Deal Room as a construction-stage AI infrastructure receipt rather than another proposal. The campus expands Microsoft's Midwest AI and cloud footprint near other Indiana hyperscale activity, while the local tax renegotiation, closed-loop liquid cooling and ecosystem / flood-protection commitments show the new template for community-facing data-center approvals: jobs, schools, utility impact and water discipline packaged with AI capacity.

Source-supported terms

What was disclosed

  1. 01

    DCD reported on June 18, 2026 that Microsoft broke ground on a data-center campus in La Porte, Indiana, after a June 17 ceremony announced by Microsoft vice chair and president Brad Smith.

  2. 02

    Smith said the first phase will create more than 600 permanent Microsoft jobs, support thousands of construction jobs and grow local tax revenues for schools and the broader community.

  3. 03

    DCD said official site-preparation work began in March 2026.

  4. 04

    DCD reported that buildings 1-3 are expected to be worked on through the end of 2027, with the data centers expected to be completed in 2029.

  5. 05

    DCD said Microsoft's La Porte plans date back to at least 2024, when the company revealed a 245,000-square-foot data center on 489 acres at Radius Industrial Park as part of a $1B Northwest Indiana investment.

  6. 06

    DCD reported that the first phase would comprise six data centers and a substation on the initial plot of land.

  7. 07

    DCD said Microsoft disclosed in April 2026 that it was planning 17 buildings on an expanded La Porte plot between East 250 South, East State Road 4 and Stevens Road, though the number of data-center buildings in the expanded plan remains unclear.

  8. 08

    Northwest Indiana Business reported that Microsoft broke ground on the new $1B data-center complex on June 17 in La Porte.

  9. 09

    Northwest Indiana Business reported that Microsoft expects the first and second buildings to be complete by spring 2029 and the third by winter 2029.

  10. 10

    The same local report says Microsoft renegotiated an agreement in March to pay its share of property taxes for the project, following Microsoft's commitment not to seek property-tax abatements or other local-government perks.

  11. 11

    Smith said the campus will use energy-efficient, closed-loop liquid-cooling technologies to conserve natural resources.

  12. 12

    Smith also said Microsoft will enhance the surrounding ecosystem to strengthen flood protection and natural habitat.

  13. 13

    La Porte sits near other Northern Indiana hyperscale projects, including Google's Project Maize in nearby Michigan City and Amazon / AWS data-center campus plans elsewhere in Northern Indiana.

Disclosure boundary

What is known—and what is not

Near-primary DCD report quoting Microsoft vice chair Brad Smith's LinkedIn announcement, supported by Northwest Indiana Business local reporting and Microsoft local-project context. Public materials disclose the groundbreaking date, $1B investment framing, 489-acre site, 245,000-square-foot facility, six initial data centers and substation, more-than-600 permanent first-phase jobs, 2029 building-completion targets, tax-agreement context and closed-loop liquid-cooling commitment. Public materials do not disclose final campus MW, utility-service agreement, interconnection status, power-generation or PPA counterparties, construction/EPC awards, full building list, server/GPU allocation, workload/customer allocation, water permits, exact capex by phase, delivery remedies or final expanded-site scope.