Winning the $11 billion Amazon Web Services project was years in the making

Amazon Web Services eventually plans to develop this land south of Indiana 2 in the Indiana Enterprise Center near New Carlisle. On Thursday, April 25, 2024, Indiana Gov. Eric Holcomb announced the company will invest $11 billion to build a data center campus on another parcel of the IEC.
Amazon Web Services eventually plans to develop this land south of Indiana 2 in the Indiana Enterprise Center near New Carlisle. On Thursday, April 25, 2024, Indiana Gov. Eric Holcomb announced the company will invest $11 billion to build a data center campus on another parcel of the IEC.

The effort to bring the largest single economic development project in Indiana history to St. Joseph County was born in a defeat that occurred about eight years ago.

The county had just been eliminated from contention for a project because it learned there were too many unanswered questions for the parcel of land that it was offering for a development.

Having options on large tracts of land with the proper zoning and having water, sewer and other utilities nearby were key factors in being able to attract the $3.5 billion EV battery plant that GM/Samsung SDI started to build just west of New Carlisle last year. It also helps that the area has an abundance of water and a good supply of power.

Now add to that the $11 billion project that Amazon Web Services confirmed Thursday that it plans to build on land just north and eventually south of the GM project at Indiana 2 and Larrison Drive.

"Developers don’t want to wait years when they’re ready to make a decision,” explained Jeff Rea, president and CEO of the South Bend Regional Chamber of Commerce. “The county spent a lot of money working through those issues and to a lot of criticism.”

Jeff Rea, president and CEO of the South Bend Regional Chamber of Commerce, discusses the announcement earlier in the day that GM and Samsung SDI will build an EV battery plant in New Carlisle at a press conference June 13, 2023, at the chamber's offices in downtown South Bend.
Jeff Rea, president and CEO of the South Bend Regional Chamber of Commerce, discusses the announcement earlier in the day that GM and Samsung SDI will build an EV battery plant in New Carlisle at a press conference June 13, 2023, at the chamber's offices in downtown South Bend.

Land was assembled into the Indiana Enterprise Center between Indiana 2 and U.S. 20 and nearly every question that a developer could ask ― questions that could cause delays ― were answered.

It's official: Amazon to build $11 billion data center near South Bend

“I believe the county spent about $3.5 million solving those problems, getting those answers,” Rea said. “But I believe $14 billion in projects (GM/Samsung as well as AWS) is a pretty good return on that investment.”

Bill Schalliol, executive director of economic development for St. Joseph County, spearheaded the effort after he was hired as the county’s first-ever economic development director in 2015.

Former Commissioner Andy Kostielney also was key to getting the IEC established and taking the criticism for the overall economic development effort. And Carl Baxmeyer, president of the Board of Commissioners, was quick to give credit to Kostielney, Schalliol and others for taking the necessary steps to attract GM/Samsung and AWS to the county.

“These projects are huge in terms of the jobs they will create and the increase in the tax base,” Baxmeyer said. “These are transformational projects for Indiana, the region and the county.”

Big fish: St. Joe County hauls in $3.5 billion GM/Samsung battery plant

Although the GM/Samsung project isn’t expected to be completed until 2027, it ultimately is expected to create about 1,600 new jobs with average pay of about $24 per hour.

The AWS project, on the other hand, will move much more rapidly.

Schalliol said AWS is expected to build four 216,000-square-foot buildings on land north of the GM/Samsung site before the end of the year. The company also is expected to complete the purchase of additional land south of Indiana 2 in the next few weeks, he added.

Bill Schalliol
Bill Schalliol

Officials have said that the $11 billion investment and 400 jobs is for the first phase of the project north of Indiana 2 and that the investment by AWS in St. Joseph County could ultimately exceed those totals.

And the jobs will average 125% of the average wage in the county, which currently is at $26 an hour, he said, adding that the company will likely bring in some personnel but will also provide training opportunities.

Of the 3,000 acres in the Indiana Enterprise Center between New Carlisle and South Bend, there are still about 1,000 acres that are yet to be developed, Schalliol said, adding that he expects suppliers and partners that work for GM/Samsung as well as AWS could fill in much of what remains.

The area that is blue in the middle of the map is the location of the GM/Samsung SDI plant. The shaded area northeast and south of the GM/Samsung plant is the proposed location of a massive data center.
The area that is blue in the middle of the map is the location of the GM/Samsung SDI plant. The shaded area northeast and south of the GM/Samsung plant is the proposed location of a massive data center.

Additional land near the projects ultimately could be brought into the IEC, but the county also is looking for other areas of the county where additional development could occur, including the former St. Joe Farm on the eastern side of the county.

Another tech company reportedly is eyeing about 900 acres for use there as a data center, but that project is still contingent on a zoning change to allow for industrial use, among other things.

Schalliol said AWS will build AI machine-learning data centers that will help provide computing and data services for its customers. He said AWS officials will be on hand in the next couple of months to celebrate the project, which already has become a beehive of activity.

Carl Baxmeyer, president of the St. Joseph County Board of Commissioners, speaks Tuesday, Feb. 20, 2024, at the commissioners meeting in the County-City Building in South Bend.
Carl Baxmeyer, president of the St. Joseph County Board of Commissioners, speaks Tuesday, Feb. 20, 2024, at the commissioners meeting in the County-City Building in South Bend.

“This is going to open up a lot of new opportunities for the western side of the county and even LaPorte,” Baxmeyer said. “It’s going to elevate the entire region.

“GM and AWS puts us on the map as a place to do business,” he said.

Email Tribune staff writer Ed Semmler at esemmler@sbtinfo.com.

This article originally appeared on South Bend Tribune: Why the South Bend region won the state's largest-ever investment

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