Study: Data centers could support nearly 3,000 Northwest Indiana jobs a year
A new study indicates that data centers could generate nearly 3,000 jobs annually across Northwest Indiana, primarily through local contractors and utilities. The report, conducted by Indiana and Capital University professors, analyzes the potential economic impact of a hypothetical $10 billion data center campus over seven counties. It highlights significant regional economic output but notes that benefits are not guaranteed and environmental impacts were not assessed.
The Center Square reports on a new study revealing that data centers could create almost 3,000 jobs annually in Northwest Indiana. Authored by economics professors Justin Ross of Indiana University Bloomington and Saurav Roychoudhury of Capital University, the report analyzed the potential impact of a hypothetical $10 billion, 1-gigawatt data center campus across seven counties: Lake, Porter, LaPorte, Jasper, Newton, Pulaski, and Starke.
The study projects that a three-year construction phase would generate $6.7 billion in regional economic output and over 20,000 job-years. Once operational, the campus is estimated to support 2,986 annual jobs and $845.8 million in regional economic output, with the majority of jobs supporting local contractors, utilities, and businesses rather than direct data center employment. Electricity spending alone could create over 1,100 jobs and nearly $500 million in economic activity. The professors highlighted that Northwest Indiana possesses the existing industrial base, such as steel and construction, to capitalize on these opportunities.
Individual counties are identified for specific roles: Lake County for internet and cybersecurity, Porter County for equipment and logistics, and Starke County for workforce training. Notably, LaPorte County already has a planned Microsoft data center campus, and Amazon has announced a project in Jasper County. However, the study cautions that these economic benefits are not guaranteed, as a significant portion of spending on equipment might not stay local, and local firms must qualify for contracts. The report also explicitly does not account for environmental costs, utility rate impacts, or land-use issues.