An $800 million data center is coming to Michigan City, but details remain murky
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A major data center project is moving forward in Michigan City. And though local officials claim the proposal is “an outstanding economic opportunity,” they aren’t divulging many details.
In early June, the Michigan City Common Council approved the creation of an Economic Revitalization Area for the area surrounding 402 Royal Road on the western edge of the city. Council member Donald Przybylinkski confirmed to Inside INdiana Business a data center project is planned for the site.
The move by Michigan City’s council coincides with the Indiana Economic Development Corp. (IEDC) approving tax credits for a data center project in La Porte County labeled only as “Project Maize.”
The IEDC says the company behind the project has committed to investing $832 million and creating 30 jobs by 2034. That’s in exchange for about $42 million in tax breaks over 35 years.
But few other details about the new data center are known as public officials in Michigan City are unwilling or unable to talk about the development publicly.
“We are working on an unusually large project,” Economic Development Corp. Michigan City President Clarence Hulse told the city council at a June 3 meeting. “We can’t say much about what they are and that type of stuff. But they did come to talk with the council and talk about what they want to do in the city.”
An IEDC spokesperson declined to comment on “Project Maize.”
Royal Road
At a meeting in late June, IEDC staff described “Project Maize” as a hyperscaler—a phrase that generally refers to large data center campuses that can encompass multiple buildings and hundreds of acres.
However, the site in question is only 67 acres and is owned by Phoenix Michigan City Industrial Investors LLC, per La Porte County property records. The property is the site of the former ANCO windshield wiper factory which closed around 2012. Property records show Phoenix bought the site for around $1.25 million in late 2022 and a 400,000 square-foot building remains.
A representative from Phoenix did not return messages from Inside INdiana Business seeking more information about the company’s plans for the property.
Given Phoenix is not a data center operator, it is likely the company will lease the building to an undisclosed end user. Phoenix also owns a massive proudction plant in Warsaw, which it is leasing to startup Slate Auto.
Crucially, the Royal Road property is already zoned for light industrial use, meaning the end user doesn’t need the city’s approval to turn the site into a data center.
Rezoning efforts have run into stiff public opposition in recent months in multiple communities around Indiana, including Kosciusko County, and Indianapolis. In northwest Indiana grassroots groups in Valparaiso and Chesterton have also caused data center proposals to get scrapped within the last year, with opponents saying there are negative environmental consequences, and the centers suck up too much energy.
What officials are saying
Specifics about who will operate the data center and how it will be run are scant, as public officials in Michigan City aren’t eager to talk about the project publicly.
When contaced by IIB, Michigan City Chief Administrator Kelley Smith told reporters to speak with Hulse or city redevelopment director Skyler York.
Neither York nor Hulse responded to multiple messages seeking interviews. Hulse’s comments at a recent council meeting, however, suggest council members have been filled in on some details.
At the council’s June 3 meeting, council president Tim Bietry called the proposed data center “an outstanding economic opportunity for Michigan City that I think will pay benefits for decades.”
IIB left messages for Bietry and council member Nancy Mouldenhauer—who represents the district the where the data center is planned—but they were not returned.
For his part, council member Przbylinkski said he was told the name of the data center operator but can’t recall what it is. Przybylinksi also said he’s unaware if any city officials have signed non-disclosure agreements surrounding the project. Such agreements are common with data center projects, though they decrease transparency in the process.
All that leaves it unclear how far along the project is or if Phoenix has officially leased the site to a third-party operator.
Przybylinksi said he’s seen workers active around the site when he drives past the property.
“If you take a ride past where this building is at, they’re going to town out there. They’re doing landscaping, they’re cutting trees and doing work inside the building,” Przbylinksi said.
Though the property doesn’t need to rezone, Michigan City’s council will vote in the near future on creating a TIF district for the project. The council will also have to approve any tax abatements.