Michigan City Factory Set for $830M Data Center

MICHIGAN CITY, Ind — Developers plan to turn a former windshield wiper plant on Royal Road into a data center, without asking the city for a tax break.

The project, called Project Maize, is expected to bring $830 million in private investment and create 30 jobs by 2034, according to the Indiana Economic Development Corporation.

Phoenix Investors, a Milwaukee-based developer, bought nearly 70 acres at the site in 2022 for $1.25 million. Renovations are underway, including raising the building’s roof from 16 to 28 feet and adding a new electrical substation. The company is preparing the site to attract data center operators but has not announced any tenants.

The data center will use a closed-loop water cooling system, and officials say it won’t raise electricity rates for residents. Local union leaders say construction could create jobs for electricians and other workers. The site is already zoned for light industrial use, so city approval isn’t required.

Phoenix has received state tax incentives that could total $41 million over 35 years if investment goals are met. The city could see $500,000 a year in economic impact taxes, plus property taxes. Some neighbors have raised concerns about noise, water use, and environmental effects, but city utilities officials say water use is manageable.

Michigan City will hold a public City Council meeting Tuesday night to discuss four resolutions related to Project Maize.