22 Investigates: Dollars and cents, what is the impact of data centers?

An investigation by WSBT22 explores the significant economic impact of rapidly expanding data center projects in St. Joseph County, Indiana. Bill Schalliol, director of St. Joseph County economic development, indicates that Amazon Web Services' "Project Rainier" near New Carlisle, originally planned for 16 buildings, could now grow to 31-32 buildings, potentially doubling or tripling its initial multi-billion dollar investment. Amazon is covering 100% of the $160-$170 million in infrastructure costs, including new water and sewer pipes, water treatment plant upgrades, a water tower, and road improvements, in exchange for substantial tax incentives, including an 85% tax break over 35 years on equipment, which could save the company billions. Similarly, Microsoft's data center project breaking ground in Granger has expanded from one planned building to five or six, with an exponentially higher investment. Unlike Amazon, Microsoft has no tax incentives and is expected to bring in $30-$35 million annually in property taxes almost immediately. While the projects promise revenue and jobs (Amazon has already created 900 jobs for seven online buildings, with 80% filled by Indiana residents), University of Notre Dame economics professor Marco Giacoletti cautions that early data center projects in other states have sometimes overpromised on permanent jobs. Despite some growing opposition, St. Joseph County anticipates using the new revenue for significant infrastructure plans in areas like Granger and Osceola.