LaPorte schools to benefit from Microsoft data center taxes under new deal with city

In January, Microsoft President Brad Smith said the company would no longer seek property tax abatements or other tax breaks for its new data center projects.

"The new tax agreement is great news for our city and our future," LaPorte Mayor Tom Dermody said in a press release. "This arrangement provides greater benefits when compared to other structures we’ve seen, with significantly more lucrative revenue streams for both the city and the school corporation. Microsoft has demonstrated a true commitment to our community, and this partnership we have forged will benefit local families and students for generations to come."

Microsoft's Indiana-centric website promises to uphold the principles of its "Community First AI Initiative," which includes ensuring that its data centers do not spike electricity costs or reduce the available water within the city limits. The website also specifically mentions adding to the tax base to benefit local hospitals, schools, parks and libraries.

Michael Stockwell, who works in land development for Microsoft, said in a statement that the agreement is in line with the company's commitments as "good neighbors" to the communities where the company operates its data centers.

"Microsoft is proud to be part of the LaPorte community, and we are glad to continue our work with city leaders to ensure our datacenter development and operation strengthens, not strains, the community," Stockwell said.

School Superintendent Sandra Wood said in the press release that the level of support "will be transformational for the district."

"This is a defining moment for our school district," Wood said. "What the City of LaPorte and Microsoft have made possible will give the students of LaPorte an unmatched advantage. An opportunity of this magnitude doesn't just open doors for this generation, it builds them for every generation that follows."