May 5, 2024
Amazon to Invest $11B in Indiana Data Center Campus – What is a Ground Lease?, Robert Khodadadian
New York City Skyline - Robert Khodadadian
Amazon Web Services also recently completed the purchase of a data center campus in Pennsylvania. Screenshot from a video presentation by Talen Energy/Cumulus Data

Amazon Web Services, an Amazon subsidiary, is set to invest $11 billion in a data center campus in northern Indiana, officials said on Thursday morning. The project will mark the largest capital investment in state history.

The development is set to include data storage drives, computer servers, networking equipment and other modern technologies to further support the cloud computing company.

AWS selected the Indiana location for its access to infrastructure resources, pro-business environment, proximity to a skilled talent pool and growing semiconductor and technology industry presence.  

The new campus is estimated to create more than 1,000 new jobs and benefit the nearby town of New Carlisle. AWS is also set to contribute up to $7 million in road infrastructure improvements along nearby State Road 2 and is expected to launch a grant program in the area aimed at supporting education, development, community and environmental initiatives.

AWS also recently expanded its presence in Pennsylvania. The company acquired a 1,200-acre data center campus for $650 million. That property already includes a 48-megawatt, 300,000-square-foot powered shell which completed last year.

Well-located

Located in St. Joseph County, the upcoming AWS development will be built in the 2,920-acre Indiana Enterprise Center, which is situated between New Carlisle and South Bend.

The planned campus is on or near a variety of key thoroughfares that provide access throughout Indiana and the Midwest, including Interstate 80, I-90, I-94, U.S. 20, U.S. 31 and State Road 2. South Bend International Airport is some 7 miles from the IEC. The Port of Indiana at Burns Harbor is accessible via State Road 2.

Existing IEC tenants include American Electric Power, Air Gas, Helena Chemical, Just Packaging, Navistar and Alkegen.

The post Amazon to Invest $11B in Indiana Data Center Campus appeared first on Commercial Property Executive.

  

In the simplest form, a ground lease is a long-term net lease (usually 49 years or 99 years) of land including any improvements on the said land. Assets that can be subject to a ground lease include but are not limited to, vacant land, office buildings, and large residential buildings.

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