Amazon Plans $11B Investment for New Data Center in Indiana

Indiana Gov. Eric Holcomb announced last Thursday that Amazon will invest $11B on behalf of Amazon Web Services, the cloud computing arm of the company to build a cutting-edge data center campus in north-central Indiana.

Gov. Eric Holcomb called the commitment, “the largest capital investment in the state’s history”. The Governor said, “Indiana’s focus on building technology is paying off for its people. Amazon Web Services (AWS) will create over 1,000 new jobs, making Indiana a leader in the digital world. Indiana welcomes AWS to our thriving community. We recognize the impact the investment will have on New Carlisle, the broader north central region, and the entire state.”

The Governor continued, “AWS choosing to grow in Indiana shows how much the state has to offer for new ideas and businesses to thrive. By making Indiana their home base, AWS isn’t just helping the economy grow, they’re also supporting the training of future tech experts through special programs to help people learn and work in tech.

Timeline for the Amazon’s New Data Center in Indiana

A timeline for the Amazon’s Data Center in Indiana wasn’t outlined in the Thursday’s announcement, but the release indicated it would be built out over the coming decade in the Indiana Enterprise Center. A 3,000-acre business development zone between the cities of New Carlisle and South Bend in St. Joseph County. Also, GM and Samsung announced plans last year to build a $3.5 billion EV battery plant in the IEC and is expected to be completed in 2027.

Other investments beyond Indiana

Since 2010, Amazon said it had invested more than $21.5 billion across a variety of projects in Indiana but is also investing beyond the Hoosier State, they are planning to spend nearly $150 billion globally on data centers over the next 15 years, according to Bloomberg. This year so far, the company has invested $10 billion in data centers in Mississippi and paid $650 million for a nuclear-powered data center in Pennsylvania.

Aws’s unwavering commitment to supporting customers

“AWS’s unwavering commitment to supporting our customers and helping drive digital transformation has been evident through our infrastructure investments across the United States,” AWS Director of Economic Development Roger Wehner said in a statement.

Amazon Web Services is the world’s most comprehensive and broadly adopted cloud, and its data centers enable customers of all sizes and across all industries, such as healthcare, automotive manufacturing, public sector, financial services and more, to transform their businesses operations. Millions of customers around the world—including the fastest-growing start-ups, largest enterprises, and leading government agencies—are using Amazon Web Services to lower costs, become more agile, and innovate faster. The new data center campus in north-central Indiana will contain computer servers, data storage drives, networking equipment, and other forms of technology infrastructure used to power cloud computing capabilities, and generative artificial intelligence (AI) technologies.

Amazon’s New Data Center in Indiana to boost local and regional economy

“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.”

Incentives For Amazon’s Data Center in Indiana

Based on the company’s significant capital investment plans, the Indiana Economic Development Corporation (IEDC) committed an investment in Amazon Web Services in the form of data center sales tax exemptions for eligible capital investments over a 50-year term. The IEDC also committed an investment of up to $18.3 million in the form of headcount-based tax credits, up to $5 million in training grants, up to $55 million in Hoosier Business Investment tax credits, and up to $20 million in redevelopment tax credits.

These incentives are performance-based, meaning the company is eligible to claim state benefits once investments are made. In addition to its community investment and engagement activities, AWS will also contribute up to $7 million to support road infrastructure improvements being conducted by the state and local community along State Road 2 surrounding the company’s planned development. The company’s investment plans are dependent upon the execution of long-term energy service agreements.