The residents of St. Joseph County want economic development that helps our community flourish. But as massive data centers are built in our region ― Amazon in New Carlisle and Microsoft in Granger ― many of us are deeply concerned that we are giving away our land, water and energy to the wealthiest companies in the world while getting too little in return.
As residents, we have an obligation to ask two simple questions: What does our community receive from these hyperscale projects? How do we protect ourselves from unintended consequences? These are common-sense questions that every community should ask before a project of this scale becomes operational.
Across the country, communities are learning that data centers are not just giant warehouses filled with computers. They consume enormous amounts of electricity that can impact utility costs. When completed, for example, the New Carlisle data center alone could use as much electricity as half of all the households in Indiana. Many data centers use significant quantities of water. Backup generators degrade air quality. Large facilities create noise, light pollution and demands on public infrastructure.
Further, incentives used to attract these massive projects are raising serious questions about whether our community is getting a fair return. In 2019, the Indiana legislature and governor created a 50-year sales tax exemption for large data centers. When we residents buy building supplies, a computer or pay our utility bill, we pay a 7% state sales tax that funds education, health care and essential services. In Indiana, massive data centers currently do not pay sales tax. Microsoft’s sales tax exemption will likely be hundreds of millions of dollars each year. These numbers boggle the mind.
At the local level, additional tax abatements further reduce what these companies contribute. St. Joseph County Executive Director of Economic Development Bill Schalliol negotiated a deal with Amazon that included a 35-year, 85% tax exemption on servers and computer hardware which was approved by both the county council and commissioners.
Time and again here in St. Joseph County, ordinary people from our congregations, workplaces and neighborhoods have come together to help each other and to fight for a community where everyone can flourish. Now it’s time that our elected officials stand with us to make sure that the giant tech companies coming to our county help, not hurt us.
That’s why We Make Indiana is proposing a fair share agreement with Microsoft. A fair share agreement has two parts — a fair share fund and binding environmental protections. The proposal is based on a simple principle: if a project will benefit from our community’s land, infrastructure, workforce and public services, it should make an ongoing proportional contribution to the well-being of the people who live here.
The proposed fair share fund would invest in priorities that local residents have repeatedly identified as urgent needs: affordable housing, child care, education, workforce development, public health and support for families struggling with rising costs. Just a small percentage of Microsoft’s annual costs could mean tens of millions of dollars of investment in our county and would be transformative for our families facing these challenges.
At the same time, the community is asking Microsoft to commit to meaningful and binding environmental protections. These protections are neither radical nor punitive. They include public reporting of water and electricity use, independent assessments of utility impacts, safeguards to prevent infrastructure costs from being shifted onto residents, protections for groundwater and surface water and limits on air emissions from backup generators. Binding agreements, public reporting and independent monitoring create trust. Microsoft has publicly stated that it wants to be a good neighbor. This is an opportunity to demonstrate what that means.
We Make Indiana also urges our Republican and Democratic state legislators to undo the 50-year state sales tax exemption for mega-data centers. Rather than squeeze local communities with tight budgets, they should make data centers pay their fair share. As we urge Microsoft to be a good neighbor, we also support efforts to renegotiate the giveaway to Amazon.
We want our county leaders to fight for the well-being and flourishing of our community. We believe a community where everyone thrives is possible ― when we all do our part and pay our fair share.
This Viewpoint was submitted by Rabbi Shoshana Kaminsky, Temple Beth-El Pastor, Ken Miller Rieman, Prince of Peace Church of the Brethren, leaders in the St Joseph County Chapter of We Make Indiana.
This article originally appeared on South Bend Tribune: It’s time our elected officials stand with us on data centers | Opinion
Reporting by Rabbi Shoshana Kaminsky and Pastor Ken Miller Rieman, Guest columnists / South Bend Tribune
USA TODAY Network via Reuters Connect
By Rabbi Shoshana Kaminsky and Pastor Ken Miller Rieman, Guest columnists | USA TODAY Network
