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AWS is investing $11 billion in Indiana to expand its data centers

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Amazon Web Services (AWS) has announced plans to invest $11 billion in Indiana to build data centers. This investment is expected to generate at least 1,000 new jobs and marks the state's largest capital commitment. The new data centers will be located in St. Joseph County, north-central Indiana, and will provide the necessary computer infrastructure for powering cloud computing and generative artificial intelligence.

Amazon says that its investment is part of a long-term commitment to Indiana, where it has invested $21.5 billion since 2010 and added $19.8 billion to the state's gross domestic product. The company's investment also includes four solar farms and a wind farm, with a combined capacity of more than 600 MW.

AWS is getting sales tax exemptions from the Indiana Economic Development Corporation (IEDC) on eligible capital investments over 50 years, along with performance-based incentives such as tax credits and training grants.

Indiana Governor Eric Holcomb said:

“Indiana’s long-term economic strategy is paying dividends for Hoosiers as we cultivate the growth of critical sectors like technology infrastructure.

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.”

The new data centers in Indiana will support AWS's expanding cloud computing and generative artificial intelligence (AI) services. Cloud companies are globally expanding their capacities primarily due to a surge in digital transformation initiatives and the use of generative AI.

Roger Wehner, AWS director of economic development, said:

“AWS’s unwavering commitment to supporting our customers and helping drive digital transformation has been evident through our infrastructure investments across the United States

Building upon this, we are thrilled to be expanding our operations in Indiana through this planned $11 billion investment, which will create numerous well-paying job opportunities and tap into the state's burgeoning tech sector, while contributing significantly to the state's growing economy.

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. 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.”

Amazon's investment also includes contributing up to $7 million to support road infrastructure improvements in the state, which will benefit residents by enhancing transportation networks and improving accessibility.

As more and more businesses move towards modernizing their IT infrastructure, the demand for cloud computing services is increasing rapidly. Recently, Google also announced the expansion of its data centers in the Netherlands.

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