Key facts
- Microsoft has promised to be a 'good neighbor' to communities where it builds data centers.
- In Indiana, the group We Make Indiana proposed Microsoft negotiate a binding agreement for annual contributions to local services.
- We Make Indiana believes Microsoft's proposed one-time nonprofit donations totaling up to $1 million are not proportionate to the company's tax savings.
- The group's proposal suggests Microsoft contribute a fair percentage of its annual data center costs to a fund overseen by an independent board.
- A similar bill in Pennsylvania, the Data Center Fair Share Act, would require data center developers to share at least 10 percent of a project's total cost.
Microsoft has been promoting its commitment to being a "good neighbor" in communities where it establishes new data centers, promising to pay local property taxes and invest in vital services. However, representatives have reportedly been vague when asked about the extent of these investments.
In Indiana, a local nonpartisan group called We Make Indiana, comprising about 25 congregations and community organizations, has spent six months trying to alert Microsoft to urgent community needs in areas such as health care, child care, elder care, transportation, and affordable housing. The group noted that a recent state property tax savings bill has hampered local governments' ability to raise revenue for community services.
According to We Make Indiana, Microsoft's liaisons indicated that the company would only approve one-time nonprofit donations totaling up to $1 million. The group believes this maximum budget is disproportionate to the tax savings and profit margins Microsoft gains from its Granger data center. They argue that Microsoft could do more through its "community-first AI" platform.
We Make Indiana has proposed a "Fair Share Agreement" where Microsoft would negotiate a binding agreement to contribute a small portion of its data center costs annually to a fund overseen by an independent board. This fund would address social and environmental impacts from the data center. The group suggested that Microsoft assess what percentage would be fair, noting that even 1 percent could add approximately $30 to $40 million annually to community programs. They also asked Microsoft to agree to higher environmental standards.
This approach is not entirely new. US Sen. Bernie Sanders has proposed a broader national "sovereign wealth fund" for AI firms, and Pennsylvania state Sen. Lindsey M. Williams introduced a bill requiring data center developers to enter into legally binding "community benefits agreements" to share at least 10 percent of a project's total cost.