Amazon Web Services to build $11B Indiana data center campus

A worker inside an AWS data center. (Photo from Amazon.)

An Amazon subsidiary focused on web services plans to invest $11 billion into the construction of a data center campus in north-central Indiana, Gov. Eric Holcomb announced Thursday.

He said Amazon Web Services’ (AWS) plans are the largest capital investment announcement in the state’s history. The project is expected to create at least 1,000 new jobs.

“Indiana’s long-term economic strategy is paying dividends for Hoosiers as we cultivate the growth of critical sectors like technology infrastructure,” Holcomb said in a news release. “Amazon has long been an important economic partner in Indiana, and we are excited to welcome AWS.”

“This significant investment solidifies Indiana’s leadership position in the economy of the future, and will undoubtedly have a positive ripple effect on the town of New Carlisle, the north central region and the state of Indiana for years to come,” he added.

The release highlighted Indiana’s “business-friendly environment,” infrastructure, skilled labor pool and technology sectors for the choice.

“This investment will include our continuing commitment to fostering workforce development and educational initiatives in areas where we operate, and we look forward to helping nurture the next generation of talent in the Hoosier State,” said Roger Wehner, AWS’ director of economic development. “We are excited to partner with Governor Holcomb, IEDC, and other state and local leaders to forge a path toward a brighter future for Indiana’s tech landscape.”

The data centers will include computer servers, data storage drives, networking equipment, other cloud computing-related technology infrastructure and generative artificial intelligence technologies.

AWS also plans to put up to $7 million toward road infrastructure improvements along State Road 2, near the planned development.

In exchange for AWS’ pricey planned investments, the Indiana Economic Development Corp. offered the company up to $100 million in performance-based tax credits and grants:

• Up to $55 million in Hoosier Business Investment tax credits

• Up to $20 million in redevelopment tax credits

• Up to $18.3 million in headcount-based tax credits

• Up to $5 million in training grants

AWS must follow through on its investment plans to claim the incentives, according to the release.

That incentive total doesn’t include 50 years worth of data center sales tax exemptions on eligible capital investments.

Amazon, on its blog, said it would also be dedicating $100,000 to a community grant program meant to aid economic development; education; the environment; diversity and equity; health and homelessness; and workforce development.

“The AWS announcement today will be a generational boost to our local and regional economy, and we are excited for the opportunity to welcome the AWS team and workforce into our community,” said Carl Baxmeyer, president of the St. Joseph County Board of Commissioners. “This new data center campus to be built in the Indiana Enterprise Center (IEC) over the next decade will be a major employment center for all of northern Indiana. This project announcement also shows our alignment with the State’s goal to create next level jobs that benefit all Hoosiers.”

Amazon said it’s invested $21.5 billion into Indiana since 2010, creating 26,000 part-time and full-time jobs.

“The momentum we’ve seen in recent months with several global, technology and innovation-fueled enterprises choosing Indiana to locate operations and invest is setting the stage for Indiana’s next chapter,” said Indiana Technology & Innovation Association Executive Director Jennifer Hallowell. “To embrace this opportunity, we must continue to prioritize innovation and entrepreneurship at all levels and ensure we’re creating the strongest ecosystem to attract world-class companies and help our own Hoosier entrepreneurs succeed. We’re excited to welcome AWS to Indiana and work together to propel Indiana forward.”

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