The proposed site of Phoenix Investors’ $800 million data center project, the former Anco windshield wiper factory in Michigan City. Photo from Google Maps.

News Release

MICHIGAN CITY — Developers behind the proposed data center project at a former windshield wiper plant in Michigan City held a public meeting for the first time last week to declare their intention to move forward without tax incentives from the city.

According to Indiana Economic Development Corp., the project could generate a total of about $830 million in private investment and 30 jobs by 2034.

Michigan Mayor Angie Nelson Deuitch has publicly said that the city does not intend to give developer Phoenix Investors a local tax cut. In a public meeting, Nelson Deuitch clarified that she was not opposed to the entire project, only to the tax cut proposed by Phoenix.

The Milwaukee-based developer purchased nearly 70 acres by Royal Road at the western end of Michigan City for $1.25 million in 2022. The site had a 400,000 square foot empty facility that housed the ANCO wiper factory, which closed more than a decade ago.

According to John Peret, Phoenix Investers’ construction manager, the company is currently renovating the building and raising the roof from 16 feet to 28 feet. Phoenix did not reveal if the proposed data center had found an end user, but Peret said that the company’s strategy was to improve the site to assist in marketing to operators.

Peret presented Phoenix’s plan, which involve a new substation just north of the existing plant building and electrical yards around the structure. Phoenix has secured land for future data buildings if end users want more space.

A NIPSCO station across the street was key in Phoenix’s decision to pursue a data center at that location, according to Peret. The company said the project would not increase electricity prices for area residents, adding that Phoenix was not spending the city’s money on development.

However, not everyone at the meeting agreed with Phoenix’s proposal. Locals expressed concerns about noise levels, water use, and the center’s overall environmental effect.

Peret said a closed-loop water cooling system would be used by the center, but did not give the number of gallons used. City utility representatives said there were no issues with Michigan City managing water use.

Others, including local union leaders, agreed that construction would lead to jobs for local electricians and workers.

In contrast with other recent Indiana data center proposals, the Royal Road site has already been zoned for light industrial use. In other words, Phoenix does not require city approval to turn the site into a data center. City officials are calling for a tax increment financing district on the premises to support some payments for the improvement of utilities, which requires a council vote.

Phoenix has already received many tax cuts from the IEDC, which approved the incentives at last month’s meeting. If the data center reaches its investment mark, the state will waive up to $41 million in taxes over 35 years.

In a public comment, Nelson Deuitch mentioned the yearly economic impact tax of $500,000 that the project would owe the city in addition to property tax.