Microsoft broke ground on its new $1 billion data center complex June 17 in La Porte.

“This marks more than the start of a new data center,” said Brad Smith, vice chair and president of Microsoft Corp., on LinkedIn. “It represents the future of this community and our commitment to being a good neighbor.”

Mayor Tom Dermody, and other local and community leaders were on hand to celebrate the milestone.

Smith said the first phase of the project will require thousands of construction workers to build the 245,000-square-foot facility on 489 acres in the Radius Industrial Park. The first phase will then create more than 600 jobs. Microsoft also is proposing an expansion east of the first phase, which includes six buildings.

Microsoft expects the first and second buildings to be complete by spring 2029, and the third by winter 2029.

Smith also said the facility will “grow local tax revenues to support schools and the broader community for generations.”

In March, Microsoft renegotiated an agreement to pay its share of property taxes for its data center project in the city. Smith said the change was an effort to make good on a promise made in January to not seek property tax abatements or other perks from local governments.

“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.” said Mayor Tom Dermody in March.

For those concerned about utility rates and the environment, Smith said Microsoft is committed to making sure the data center does not create hardship for the community.

“Our campus will be designed with the latest energy efficient and closed-loop liquid cooling technologies to conserve natural resources,” he said. “And we will enhance the surrounding ecosystem to strengthen flood protection and natural habitat.”

Microsoft also met with community members April 26 to discuss the project.

The data center deal in La Porte was first announced in summer 2024. It will sit on land bounded by Boyd Boulevard and East 250 South. The second phase is on 500 acres east of the first phase.

Typical jobs at a data center will include initial construction, data center technicians and critical environment technician. Data centers are the infrasture for cloud computing.

Learn more about data centers in Northwest and North Central Indiana in Northwest Indiana Business Magazine's June/July cover story.