# Microsoft's data center silence tests community power > Indiana church groups demand Microsoft share profits from massive tax breaks, but the company won't commit to binding community investments. - Title: Microsoft's data center silence tests community power - Summary: Indiana church groups demand Microsoft share profits from massive tax breaks, but the company won't commit to binding community investments. Communities… - Keywords: microsoft, data centers, indiana, granger, st. joseph county, south bend, tax breaks, community benefits agreements, we make indiana, fair share agreement, nonprofit donations, tax exemptions - Source: Ars Technica — https://arstechnica.com/tech-policy/2026/09/microsoft-goes-quiet-after-church-groups-ask-for-1-of-data-center-costs - Published: 2026-09-28T11:00:09+00:00 - Read time: 4 min - Topics: microsoft, data centers, indiana, granger, st. joseph county, south bend, tax breaks, community benefits agreements, we make indiana, fair share agreement, nonprofit donations, tax exemptions ## Microsoft promises to be good neighbor The company tells communities it will pay local taxes and invest in vital services. But when asked how much, Microsoft representatives seem unprepared to answer beyond campaign materials. ## Tax breaks dwarf community investments Data center developers get hundreds of millions in state tax exemptions lasting over a decade, while Microsoft's charitable giving totaled just $229 million across 29,000 nonprofits nationwide in 2024. ## Georgia gave away $474 million A state audit found Georgia surrendered $474 million in sales taxes in one year from data centers but received only $41 million back from the industry. > gave up $474 million in sales taxes in one year, and got back just $41 million from the industry ## Indiana exemption could cost $900 million Big firms like Microsoft can buy data center equipment without paying Indiana's 7 percent sales tax. The exemption could apply to $13.2 billion in projected purchases, costing the state up to $900 million in tax revenue. ## South Bend community struggles While Microsoft benefits from tax breaks, the community around a 900-acre Granger data center faces deteriorating services. A property tax savings bill hamstrung local governments' ability to fund health care, child care, and transportation. ## We Make Indiana steps in A coalition of 25 congregations and community organizations spent six months alerting Microsoft to urgent needs in health care, child care, elder care, transportation, and affordable housing. ## Microsoft offers only $1 million A Microsoft liaison told We Make Indiana the company will approve one-time nonprofit donations totaling up to $1 million. The group believes this is not proportionate to the tax savings Microsoft receives. ## Fair Share Agreement proposal We Make Indiana proposed a binding agreement where Microsoft would donate a small percentage of its data center costs to the county each year, overseen by an independent board. > Microsoft has publicly stated that it wants to be a good neighbor. This is an opportunity to demonstrate what that means. ## Pennsylvania bill requires 10 percent The Data Center Fair Share Act, introduced in Pennsylvania, would require developers to share at least 10 percent of project costs with community funds for workforce development, housing, and environmental improvements. ## We Make Indiana asks for 1 percent The group initially planned to ask for just 1 or 2 percent, estimating that even 1 percent could add $30 to $40 million annually to community programs. Instead, they asked Microsoft to assess what percentage might be fair. ## Microsoft goes silent After receiving the proposal, Microsoft has not responded substantively. A spokesperson said the company considers it important but is still engaging other community leaders. > Microsoft remains committed to developing our data center project in Granger in partnership with the community. ## One-time grants, not ongoing support Microsoft approved initial grants focused on educational nonprofits and a community college for digital skills training, plus a land trust and hunger relief donations. But these are one-time investments on Microsoft's terms. ## Community sees PR, not partnership At an open house, We Make Indiana brought 75 community members to show support for their proposal. But attendees said Microsoft's specialists had talking points with little substance and couldn't answer environmental questions. > The specialists Microsoft brought out to the open house here in the county had talking points with little substance. ## Microsoft avoids real dissent At town halls, Microsoft uses diffusion techniques with multiple representatives scattered around the room taking sticky notes rather than hosting transparent panels. This avoids addressing residents' questions directly. > It seems very rote and kind of like they're ticking a box. It doesn't seem like they want to hear real dissent. ## Communities organizing for leverage We Make Indiana is planning public demonstrations to highlight the contrast between tax breaks and service cuts. They hope to use upcoming negotiations over additional tax incentives as leverage for binding commitments. ## Indiana is data center sweet spot Microsoft recently broke ground on a second data center in northern Indiana, which has abundant land, water, state tax incentives, and a strategic location on electrical power grids. ## No TIF without Fair Share We Make Indiana is exploring whether a proposed tax increment financing district around the Microsoft site can be used as leverage. The message: Microsoft won't get additional incentives without committing to a fair share agreement. ## Building it better, not stopping it We Make Indiana already blocked a Meta data center by rallying hundreds to pressure officials. The Microsoft fight is different: the group wants the data center built with better environmental standards and proportional community investments. > We want development that doesn't threaten our environment and our electric bills and that invests in a decent way, a proportional way. ## Question of power We Make Indiana has been organizing since 2024 with bipartisan support. The group is ready to mobilize hundreds from faith communities if Microsoft refuses to negotiate a binding fair share agreement. > Basically, this is a question of power: Do they need to talk to us or not? ## Key takeaway Communities hosting data centers are organizing to demand binding agreements that tie corporate investments to local needs, rather than accepting one-time donations on corporate terms.