New Economic Impact Study: Hyperscale Data Center Development Would Generate $16 Billion in Regional Output, Thousands of Jobs for Northwest Indiana
An independent academic analysis using federal Bureau of Economic Analysis modeling finds a 1-gigawatt hyperscale data center campus — the scale of announced Northwest Indiana projects — would drive billions in output and support thousands of jobs across the seven-county region.
NORTHWEST INDIANA — A new academic analysis released today finds that a 1-gigawatt hyperscale data center campus in Northwest Indiana the scale of announced projects similar to those announced in the Region would generate approximately $16.1 billion in regional economic output over 20 years and support 14,651 construction job-years and 2,090 ongoing jobs across the regional economy once operational.
The analysis, authored by Dr. Justin Ross of Indiana University Bloomington and Dr. Saurav Roychoudhury of Capital University, applies the U.S. Bureau of Economic Analysis's Regional Input-Output Modeling System (RIMS II) to the seven-county Northwest Indiana region: Lake, Porter, LaPorte, Jasper, Newton, Pulaski, and Starke counties.
“The scale of impact here is significant for Northwest Indiana. We apply standard input-output modeling carefully with conservative assumptions at every step, and find a single hyperscale campus generates billions in regional output and thousands of jobs. This is the kind of sustained economic activity that can meaningfully strengthen a regional economy over the long term," said Dr. Justin Ross, Professor of Economics at Indiana University Bloomington, who co-authored the study.
"This study confirms what our member communities have been seeing on the ground: hyperscale data center investment brings real, lasting economic benefit to Northwest Indiana,” said Heather Ennis, President and CEO of the Northwest Indiana Forum. “Thousands of construction jobs, hundreds of permanent positions, and billions of dollars circulating through our regional economy — this is the kind of transformative investment the Region has been working to attract for a generation."
Substantial impact across every phase of investment
Analyzing the impact of a 1-gigawatt data center campus, the study projects:
$5.45 billion in regional economic output during the three-year construction phase
14,651 job-years of construction employment
$1.08 billion in construction worker earnings
$691 million in annual regional output once operational
2,090 ongoing jobs supported across the regional economy
$176 million in annual worker earnings once operational
At the larger 1.5-gigawatt / $15 billion campus scale — comparable to the announced Hobart investment — lifetime regional output rises to an estimated $24.2 billion, supporting 21,979 construction job-years and 3,137 ongoing jobs.
“Our analysis points to substantial regional economic activity for Northwest Indiana, including billions in regional output, thousands of construction job-years, and meaningful ongoing operations employment,” said Dr. Saurav Roychoudhury, study co-author and Professor of Finance and Economics at Capital University. “Here in Ohio, we have seen how hyperscale investment can become a significant source of construction activity, supplier demand, and long-term operations spending. Northwest Indiana has several advantages that could allow it to capture a meaningful share of that activity, including its established industrial base, skilled trades workforce, and proximity to Chicago.”
A robust jobs picture
The study takes a careful, defensible approach to counting employment. At the 1-gigawatt campus, the analysis identifies 300 permanent on-site W-2 employees, approximately 926 direct jobs under standard federal modeling conventions (which include contract and vendor personnel directly engaged in operations), and 2,090 total jobs including supply-chain effects.
Anchored to Project Labor Agreement documentation for announced Northwest Indiana hyperscale projects — including the Hobart 1.5-gigawatt investment, the La Porte project, and the Jasper County project — the analysis assumes 75 percent local labor retention during construction, ensuring the workforce benefits are grounded in real regional labor commitments.
About the authors
Dr. Justin Ross is Professor of Economics and Public Policy at Indiana University Bloomington (justross@iu.edu). Dr. Saurav Roychoudhury is Professor of Finance and Economics at Capital University.