Amazon Makes Largest Investment Announcement In Indiana History

Amazon Web Services (AWS) will invest $11B to create a new data center campus in Northern Indiana, while Toyota will invest an additional $1.4B in Southwest Indiana.

Amazon Web Services (AWS) plans to invest $11 billion to build a data center campus in north central Indiana and create at least 1,000 new jobs. Announced today, the planned investment marks the largest capital investment announcement in Indiana’s history.

AWS’s new data centers 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. Indiana is well-suited for data processing due to its business-friendly environment, abundance of infrastructure resources, availability of skilled labor and growing technology and semiconductor sectors.

“AWS’s unwavering commitment to supporting our customers and helping drive digital transformation has been evident through our infrastructure investments across the United States,” said Roger Wehner, AWS director of economic development. “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.”

AWS Indiana, Amazon Indiana
(Photo: Amazon)

Based on AWS’s capital investment plans, the Indiana Economic Development Corporation (IEDC) offered the company 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, so the company is eligible to claim state benefits once investments are made.

In addition to community investment and engagement activities, AWS will 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.

“Indiana’s long-term economic strategy is paying dividends for Hoosiers as we cultivate the growth of critical sectors like technology infrastructure,” said Governor Eric J. Holcomb, chairman of the IEDC. “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 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.”

Toyota To Invest $1.4B In Indiana

Also announced today, Toyota will locate assembly of an all-new battery electric vehicle (BEV) in Southwest Indiana. The company will invest an additional $1.4 billion at its Princeton facility, bringing total Indiana investment to $8 billion and bolstering the state’s leadership in the future of mobility.

The company’s investment will provide new plant infrastructure, including a new battery pack assembly line at the facility, to support production of the all-new battery electric SUV at Toyota Indiana. Toyota plans to create up to 340 new jobs by the end of 2025. The company already employs more than 7,500 associates in southwest Indiana to support production of the Toyota Sienna, Highlander, Grand Highlander and the Lexus TX.

Toyota Indiana
(Photo: IEDC)

 

“Our team members are the heart of Toyota,” said Tim Hollander, president of Toyota Indiana. “We take great pride in producing quality products while providing long-term, stable employment no matter the changes in our industry. Our team is committed to delivering this new product with the same quality and performance that Toyota customers expect.”

The IEDC committed an investment in Toyota of up to $5 million in incentive-based tax credits and up to $1 million in conditional structured performance payments based on the company’s plans to invest $632 million.

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“Indiana and Toyota share a nearly 30-year partnership that has cultivated job stability and economic opportunity in Princeton and the surrounding southwest Indiana region for decades,” said Gov. Holcomb. “Toyota’s investment in the state began with an $800 million commitment and has grown to over $8 billion. Today’s incredible announcement shows yet again just how important our state’s business friendly environment, focus on long-term success and access to a skilled workforce is to companies seeking to expand and be profitable far into the future. Indiana proudly looks forward to continuing to being at the center of the future of mobility.”

The project is part of Toyota’s commitment to increase electrification efforts in the U.S. and grows the company’s total investment in its Indiana facility to $8 billion. This is the company’s third major expansion announcement for the Princeton facility in four years, following commitments in 2021 to bring two new vehicles to Indiana, investing $803 million and create 1,400 new jobs, and in 2020 to complete its plant modernization project, investing $700 million and creating 150 new jobs.

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