“The Region” is now “The Data Center Region” of Indiana
Northwest Indiana is experiencing a rapid data center boom, with major projects by Microsoft and Amazon under construction or approved across multiple counties. This growth has led to increasing tension between local officials, who see economic benefits, and residents, who are concerned about noise, water and electricity usage, and tax incentives. A lawsuit has been filed in Lake County challenging tax abatements for Amazon-related projects.
Northwest Indiana is emerging as a significant hub for data center development, driven by factors such as available land, proximity to Chicago, fiber connectivity, and state/local incentives. Major tech companies, including Microsoft and Amazon, are at the forefront of this expansion.
Microsoft broke ground on a large campus in La Porte's Radius Industrial Park in June, with plans for six buildings in its initial phase and potential for further expansion. The company has committed to designing the project for efficiency and water conservation. Notably, Microsoft has also agreed to pay full local property taxes, with a portion of the revenue directed to local schools, following a revised agreement with La Porte officials.
Amazon, through its Amazon Web Services division, is also heavily invested in the region, with a campus under construction in New Carlisle (St. Joseph County) and the recently approved 'Project Rise' near Wheatfield (Jasper County). For Project Rise, Amazon pledged a $25 million investment in domestic water service expansion and will self-fund its water and wastewater infrastructure, emphasizing the use of outside-air cooling.
However, this rapid development has sparked considerable local opposition, particularly in Hobart, where Amazon-related projects have received planning approvals. Residents in Lake County have filed a lawsuit challenging tax incentives and economic-development designations for more than 700 acres of proposed development. Concerns among residents include noise, substantial power and water consumption, farmland conversion, visual impact, and the generosity of local incentives. The demand for electricity from these data centers is also placing significant pressure on Indiana's broader energy system, raising questions about who will bear the associated costs.