GRANGER, Ind. — Microsoft’s planned datacenter campus in Granger moved forward on another local agreement. St. Joseph County’s Redevelopment Commission and Board of Commissioners both voted Oct. 6 in favor of a second memorandum of understanding with the company for utilities to the site, the South Bend Tribune reported. The agreement was on both boards’ Oct. 6 agendas.
The second MOU is not final approval to build the campus. It is a follow-on to a March agreement under which Microsoft agreed to pay $12.6 million for pre-development and design services, WVPE reported Oct. 2, citing county economic development director Bill Schalliol.
Key facts
| Item | Detail |
|---|---|
| Agreement | Second memorandum of understanding (MOU) — not final project approval |
| Vote / meeting | Oct. 6, 2026 — Redevelopment Commission and Board of Commissioners both voted in favor (South Bend Tribune) |
| Utilities payer | Microsoft (county manages construction, then turns lines over to Mishawaka) |
| Dollar figures (county memo, Oct. 2, in the Oct. 6 RDC packet) | First MOU $12,577,375; second MOU $53,023,257; both together $65,600,632.70, all funded by Microsoft. WVPE (Oct. 2) had reported ~$55M for utilities plus ~$2M for roads |
| Site | About 900 acres between Bittersweet and Currant roads, I-90 on the north (Microsoft boards) |
| Expected jobs | Up to 300 full-time, not counting construction (ABC57); WOWO: six buildings, about 50 workers each |
| Next milestone | Building construction late fall 2026 or early 2027 (Microsoft May boards) |
What the second agreement covers
WVPE reported Oct. 2 that Schalliol would ask commissioners on Tuesday to approve a second agreement to run Mishawaka water and sewer to the site. Under that plan, Microsoft would pay about $55 million to build the utilities, on top of the March $12.6 million pre-development deal, for a combined spend WVPE described as about $66 million.
Microsoft would also pay about $2 million for road improvements near the site. The county would manage the water and sewer construction and turn the infrastructure over to Mishawaka once built, WVPE reported.
The county's own memo to the Redevelopment Commission for the Oct. 6 meeting gives exact figures. It puts the second agreement at $53,023,257 and the two agreements together at $65,600,632.70, all funded by Microsoft. The memo says the utility projects are expected to be finished in 2028.
Mishawaka is the project’s sole water and sewer provider, ABC57 reported in February.
Jobs and taxes
County estimates put the finished project at up to 300 full-time jobs, not counting construction work, ABC57 reported. WOWO reported plans for six buildings with about 50 workers each.
Microsoft will pay full property taxes on the campus, WOWO reported. That revenue goes to the Penn-Harris-Madison schools, libraries and township governments. The company also plans to fund training programs at Penn High School and Ivy Tech to prepare local workers.
Microsoft lists job creation among its public pledges. “We’ll create jobs for your residents,” its Indiana page says.
Microsoft’s May community boards say the company expects building construction to begin in late fall 2026 or early 2027, pending local approvals. The boards describe about 900 acres between Bittersweet Road and Currant Road, with I-90 as the northern border, and a portion of the land set aside for a Juday Creek conservation project.
Pushback and transparency
At the Oct. 6 special meeting, residents objected to trade-secret and public-records language in the MOU and asked for more transparency about power use, TIF plans and annexation, Citizen Portal reported. County attorneys said trade-secret claims are judged under Indiana law and the county retains final review authority, according to that coverage.
Citizen Portal also reported that the county board approved supplemental engineering contracts that day, with staff saying Microsoft will pay the consultant fees through the MOUs.
South Bend sets its own rules
Next door, South Bend released a draft framework on Oct. 6 for any future hyperscale datacenter in the city. It calls for projects to pay their own way, use local labor and use water and energy efficiently. The city also plans a noise ordinance. The city is taking public comment through Oct. 31.
Some council members objected to how the plan was written. Council Member Oliver Davis Jr. told WVPE the council, not the mayor, should write the standards.
Related reading
Photo credit
¹ Image: Microsoft — conceptual rendering, aerial view looking south (St. Joseph County community meeting boards, May 2026; official Microsoft Local PDF). Cropped to remove night-view inset.
² Image: Microsoft — site map, “About the site” board (same boards).
³ Image: Microsoft — draft conceptual rendering of site plan (same boards).
⁴ Image: Microsoft — conceptual rendering, front view with landscape buffer (same boards).
⁵ Image: Microsoft — conceptual rendering, landscaped entrance drive (same boards).