Amazon plans to spend $15 billion for the largest construction project in Indiana history, building data center campuses in Northwest Indiana and creating 1,100 new jobs, officials said.

The data centers would ideally be up and running in 2027, said Brandon Oyer, head of Americas water and power at Amazon Web Services.

Sites for them have not yet been finalized, although AWS is in negotiations with multiple communities, he said Monday.

The project includes 2.4 gigawatts – 2,400 megawatts – of additional generating capacity for data centers without raising rates for existing customers, Oyer said.

He expects customers to see $1 billion in cost savings over the 15-year contract with NIPSCO.

NIPSCO President and Chief Operating Officer Vince Parisi said the partnership with NIPSCO Generation (GenCo), a new subsidiary approved by state regulators in September, will strengthen the electrical grid and build capacity for growth.

Data centers are notoriously energy-intensive. Parisi said depending on where the data centers are built, additional substations could be needed, as well as additional generating capacity.

“We are working with multiple different regulatory bodies” to gain approval for the project, Oyer said.

AWS wanted to announce the planned investment despite many unknowns, including the locations, to allow the region to get to know the company better and understand the scale of the project, Northwest Indiana Forum President and CEO Heather Ennis said.

For a point of comparison, this project is 10% larger than Amazon’s $11 billion, 1,000-acre data center complex in New Carlisle, Oyer said.

Building the project will require thousands of skilled tradespeople, he said.

Not too many years ago, BP’s $3.8 billion Whiting Refinery expansion was considered the largest construction project in state history. The work at the refinery kept tradespeople working through the Great Recession, Ennis noted. Building data centers will keep tradespeople working in the region for years to come.

Oyer said Amazon is working with Ivy Tech Community College, universities and others to design, develop and grow training programs for workers who operate data centers and work with fiber optics, among other related careers.

“We were part of the backbone for the industrial revolution,” Ennis said, and now want to be a part of the technology backbone.

“It is a really exciting opportunity to continue to evolve our economy,” she said. Ennis noted the importance of economic diversification.

“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,” said Indiana Gov. Mike Braun.

“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.”

“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,” David Zapolsky, Amazon’s chief global affairs and legal officer, said in the news release.

In some communities, including Chesterton, Burns Harbor and Union Township, data center proposals have been shot down amid public outcry. But data centers are important for more than just hosting people’s photos on the cloud, Ennis said.

“Everything is evolving. We have smart refrigerators and smart dishwashers that practically buy your products for you,” she said.

People are using artificial intelligence more and more, another driver for the data center industry.

Scientific uses like cancer research are also data-intensive and require vast data storage capability, Ennis said.

Our way of life is changing with all the new technology being developed. “We find ways to connect differently because of the technology that evolves,” she said. “We can choose to be left out of the opportunity, but we can choose to participate.”

This project’s impact on the communities’ tax base can’t be calculated until the communities are chosen and incentives are finalized, but the impact will be huge. When Microsoft chose LaPorte for a $1 billion data center, Mayor Tom Dermody said it would effectively double the city’s tax base.

“It’s millions of dollars for the local communities to help with safety, help with schools, help with basic services,” Ennis said.

These data center projects are generating attention from other site selectors. “Those assets will continue to grow additional investments,” she said.

“It gives confidence to other companies that are looking at Northwest Indiana,” Ennis said. “We are open for business. We have the assets that continue to drive the economy.”

Doug Ross is a freelance reporter for the Post-Tribune.