Benefits of Indiana Data Centers

Data center construction is on the rise, especially in Indiana.

• A $2 billion Google data center is coming to Fort Wayne.
• Amazon Web Services is spending $11 billion on a data center west of South Bend.
• An $800 million Meta data center will be built in Jeffersonville, just north of Louisville, Kentucky.

And that’s just the beginning of the list! 

Indiana has nearly 40 data centers all around the state. Major companies like Microsoft and Samsung are drawn to Indiana because of tax incentives and business-friendly partnerships.

But these companies flock to Indiana for many reasons, not just tax incentives. Indiana’s central location has a lower risk of natural disasters and a cooler climate, which reduces a data center’s cooling costs. Indiana also has access to major cities like Chicago and Detroit while still maintaining Indiana’s notably lower operating costs.

Indiana Data Centers... Promote Economic Growth

Data center construction benefits economies locally, statewide, and nationally. Locally, data centers create high-paying skilled jobs. For instance, Amazon Web Services’ new data center near South Bend will create at least 1,000 jobs, and Google’s data center in Fort Wayne will generate about 200 jobs.

Large projects like these often include local infrastructure investment. Some data centers pledge to improve roads around their proposed locations, which aids local developments. Other data centers stimulate economic growth by engaging contractors, suppliers, and service providers which increases opportunities for these local businesses.

Significant statewide capital investments are being made. In 2024 alone, Indiana has seen nearly $15 billion in data center development around the state. And, while data centers frequently receive tax incentives, their large-scale operations contribute to state tax revenues, supporting public services and infrastructure.

Nationally, Indiana’s data centers support robust digital infrastructure, which is necessary for everything from e-commerce to governmental operations. These data centers are just a small part of a broader network. Indiana’s contributions support the high-growth sectors of e-commerce, bolstering the greater economy.

Indiana Data Centers... Improve Data Infrastructure

This may come as a no-brainer, but data centers benefit data processing and storage. When data centers are local, internet service providers can offer more robust and consistent connectivity, which benefits everyone. Healthcare and financial companies like Parkview Health and STAR Financial Group require high-speed data processing, so data centers locally reduce latency and improve connectivity.

Cyber security is one of the most important aspects of data processing, and data centers are equipped with advanced security measures and comply with data privacy regulations. Data centers work in harmony with local Indiana businesses to improve network support and stability to keep your data safer.

Indiana Data Centers... Increase Tax Revenues

Data centers have large facilities with significant land and infrastructure investments. This results in high assessed property values, which in turn generates property tax revenue for local governments.

When the buildings are being built, construction and equipment costs generate sales tax revenue. Data centers often upgrade and maintain hardware, servers, storage systems, and cooling technology, additionally contributing to sales tax revenue.

Indiana also offers tax incentives to attract data centers. The benefits as such often outweigh the initial costs. Incentives can include property tax cuts or reduced sales tax on equipment purchases.

Indiana Data Centers... Boost Local Businesses

As mentioned previously, data centers create jobs both directly and indirectly. Employees in turn tend to spend in the local economy, which benefits the housing market, local grocery stores, restaurants, and entertainment establishments.

Data centers also need various tech services, such as cybersecurity, software, and network management. This creates business for local IT companies, tech integrators, and managed service providers.

When campuses are constructed, data centers rely on local contractors for building, electrical work, HVAC installation, and landscaping. Even after construction, data centers need ongoing maintenance, which means there’s consistent business for local service providers.

Indiana Data Centers... Raise Land Value

The construction of data centers significantly increases the demand for land in rural areas, driving up property values and creating a positive economic ripple effect across the community. This land value appreciation benefits property owners, enhances local revenue through taxes, and attracts further investment, ultimately raising the economic standing of the area.

As land values rise, so does the property tax base. This generates increased tax revenue for local governments without needing to raise tax rates, providing more funds for schools, public services, and infrastructure improvements. Enhanced local services and facilities, in turn, make the area more attractive to businesses and families.

Join the fastest-growing community in the Midwest!

Data centers benefit communities, from the local level to the national level. With the addition of so many new data center developments in the state of Indiana, the Hoosier state is quickly becoming a more attractive place to live and do business. Join this hub of economic growth and development by contacting Sturges Property Group, Northeast Indiana’s top commercial real estate company.