Amazon Web Services is looking to invest a record-setting $15 billion in a data center or data centers in Northwest Indiana in what would be the largest private sector investment in state history.
Amazon Web Services (AWS), the cloud computing arm of Amazon, is working on an $11 billion data center campus in St. Joseph County, near the LaPorte County line. Now the company is planning to add another 2.4 gigawatts of data center capacity somewhere in Northwest Indiana, potentially across multiple sites.
AWS, which has long been Amazon’s biggest profit driver despite the company’s e-commerce reputation, continues to scale up operations as some of its St. Joseph County data centers go live, said Brandon Oyer, head of energy and water for the Americas for AWS. That project alone contributed more than $1 billion to Indiana’s gross domestic product.
"We're proud to build on that commitment within the state to invest an additional $15 billion in northern Indiana to build campuses and advanced AI innovation," Oyer said. "The new project will create 1,100 high-skilled, well-paying jobs that support thousands more across the data center supply chain with local businesses. The project will add 2.4 gigawatts worth of data center capacity in the Region. The data center brings more connectivity, faster speeds and innovative AI tools across the U.S. for businesses of all sizes, from emergency first responders and local universities to our favorite streaming services and a little bit of football here or there."
AWS has also been seeking approval in St. Joseph County for another $12 billion data center. The company operates a smaller facility at AmeriPlex at the Port in Portage, while Amazon itself runs two major distribution centers across Interstate 65 from each other in Merrillville, where it moves products nationally through a 1-million-square-foot warehouse that's believed to be the largest individual building ever constructed in Lake County.
“This is a massive win for Hoosier ratepayers. This agreement will ensure a surplus in new energy development that will deliver real savings to Hoosier ratepayers,” Indiana Governor Mike Braun said in a press release. “Amazon’s historic investment shows that Indiana’s business-friendly climate continues to attract world-class employers and drive growth in our state. This project will create more than a thousand jobs while supporting thousands more across the region, further strengthening Indiana’s position in energy dominance and economic leadership.”
Amazon Web Services announced Monday it would invest $50 billion to expand AI for supercomputing capabilities for its customers. The tech titan said it would break ground next year on 1.3 gigawatts of new capacity for federal agencies, including to facilitate scientific research on cybersecurity, energy and autonomous systems development.
Officials declined to comment on what clients the new Northwest Indiana data center would serve.
To power the new development in Northwest Indiana, AWS will contract with GenCo, a subsidiary of Merrillville-based NIPSCO. Amazon and NIPSCO leaders said the new electric capacity will be built without passing costs onto existing NIPSCO customers.
"Amazon and NIPSCO have established a first-of-its-kind framework specifically developed with local residents and small businesses in mind that will enable our growth," Oyer said. "Through the newly created subsidiary GenCo, Amazon will pay fees to use the existing power lines and cover the cost for any new power plants, power lines or equipment needed to serve the data center project without additional cost to local residents and businesses."
NIPSCO is looking to add 3 GW of additional electric generation capacity to serve the project.
"The additional generation helps to enhance grid reliability for the region, while also adding greater assurance that the grid remains reliable during periods of peak stress, such as hot summer days and cold winter nights," Oyer said. "We're committed to building, growing and investing in Indiana's energy infrastructure for the long term. We're going to be part of the community for the long term. We really see this as a win for local residents and small businesses. We expect $1 billion in cost savings over the life of the 15-year contract without local residents or businesses bearing any project risks."
Oyer said AWS is evaluating potential sites across Northwest Indiana for one or more new data center campuses.
"For the communities in Northern Indiana, it's an opportunity to benefit from major economic development and skills enabled by Amazon's investment," he said. "Because of the investment and benefits of new energy framework, Amazon will bring training and education programs that help Hoosiers take advantage of opportunities available in technical fields, including data center technician programs, fiber optic fusion splicing workshops and STEM opportunities for K-12 students. We're proud to expand our operations in Indiana to help drive AI innovation and we're grateful for the state and local leaders who have partnered with us. We look forward to keeping the state of Indiana at the leading edge of the digital age."
While economic development and city officials have touted data centers as major investments that will diversify the Region's economy and accelerate the tech sector, the projects have met opposition from residents in many Northwest Indiana communities who have raised concerns about water and electric use, as well as noise, light property values and a lack of studies on the long-term health impacts. Valparaiso, Chesterton, Burns Harbor and other Northwest Indiana communities have rejected data center projects.
"No data center" signs have appeared in communities like Hobart and Michigan City, where data center projects are planned.
The tech giant is looking at prospective sites across the seven-county Northwest Indiana region, Northwest Indiana Forum Executive Director Heather Ennis said.
"I believe this would be the largest project in the state’s history," Ennis said. "It's a pretty exciting time in Northwest Indiana."
The $4.2 billion BP Whiting Refinery modernization project that converted the former Standard Oil Refinery in Whiting to handle oil sands oil from Canada instead of sweet Texas crude had long been the biggest private-sector investment in state history. That was eclipsed by the massive $11 billion AWS data center on 600 acres of former cornfields just outside New Carlisle.
AWS's new investment would be as large as Indiana's last two record-setting private-sector investments combined.
The project will require more electric capacity than NIPSCO currently has available. NIPSCO President and Chief Operating Officer Vince Parisi said the utility expects the buildout will create 2,000 construction jobs.
"We're going to be able to build significant new generation in Indiana," Parisi said. "We'll do all of that build with a contract between us and Amazon. None of those costs will come back to our core customers. Amazon will pay a fee to use the system that over the life of the contract will bring $1 billion back to our customers."
Amazon has invested $31.3 billion in Indiana since 2010.
“Indiana has long been an important partner for Amazon, and today we are proud to reaffirm our commitment to long-term investment and growth, underscoring our dedication to fueling AI innovation while generating meaningful economic impact throughout the state,” Amazon's Chief Global Affairs and Legal Officer David Zapolsky said. “By expanding our advanced cloud infrastructure in Indiana, we are investing in Indiana's technological future through job creation, skills training initiatives and community engagement programs. We're excited to help power the next wave of technological advancement while delivering tangible benefits that will enhance the lives of Indiana residents for years to come.”
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