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Amazon Web Services Sets Sights on $7.8B Ohio Expansion

The company, a subsidiary of online retailer Amazon, plans to invest an estimated $7.8 billion by the end of 2029 as part of an expansion of its data center operations in central part of the state.

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(TNS) —Amazon Web Services, a subsidiary of the Amazon retail giant, plans to invest an estimated $7.8 billion by the end of 2029 as part of an expansion its data center operations in central Ohio, creating hundreds of new jobs, the state said Monday.

Amazon Web Services' data center project is the second-largest single private sector company investment in Ohio's history, according to the governor's office. The new data centers will contain computer servers, data storage drives, networking equipment, and other forms of technology infrastructure used to power cloud computing, which is on-demand access for data services, like data storage.

"Amazon is already one of the largest private-sector employers in Ohio, and the company's continued growth here further cements Ohio as the heart of our nation's technology and innovation," said Gov. Mike DeWine. In 2022, Amazon Web Services directly employed nearly 1,000 Ohioans across the state.

Amazon Web Services has also already invested more than $6 billion in Ohio since 2015, said Roger Wehner, Amazon Web Services' director of economic development. Amazon Web Services operates data center campuses in Franklin and Licking counties. To date, Amazon Web Services' investments and operations have generated over $2 billion in economic benefit for Ohio and supported more than 3,000 local secondary jobs on an average annual basis.

"This additional investment will bring new, well-paying jobs and will continue to boost the state's Gross Domestic Product each year," Wehner said. "We are excited to continue our partnership with the state of Ohio and deliver new workforce development and educational programs that support the next generation of talent by emphasizing collaborative, long-term public and private partnerships across the state."

This new investment will result in 230 direct new jobs and an estimated 1,000 support jobs, according to said JP Nauseef, president and CEO of JobsOhio.

"AWS (Amazon Web Services) was the first-mover in Ohio among the major technology companies, and their success has helped pave the way for the explosive growth we're seeing now," said Nauseef.

The coming $7.8 billion investment will help the growth of other businesses, as well, DeWine said, adding the data services will also allow residents to securely connect to friends and family, in addition to providing access to online educational resources and entertainment.

Numerous localities in central Ohio are under consideration for the new data center campuses, and final site selections will be decided at a later date, the state said.

This investment also points to Ohio as becoming a hub for technology in this region of the U.S., Lt. Gov. Jon Husted said.

"This positions Ohio as a critical location for the most discussed technology in the world, artificial intelligence," said Husted. "This enormous capital investment further solidifies Ohio as the tech center of the Midwest and positions us for a bright future as cloud computing and artificial intelligence are more integrated into the economy and our everyday lives."

The Dayton region has seen continued growth of its own in the technology sector this year. In March, Synergy Building Systems began construction for its new $19 million Beavercreek office building off of Colonel Glenn Highway near Meijer. Tech companies like Modern Technology Solutions and LinQuest Corporation with work at Wright-Patterson Air Force Base have already committed to filling the space for the building.

The Synergy building will be its 68th building, representing $499.2 million of investments in that local corridor and approximately 5,500 jobs created or retained in the state, the company said in March.

"Ohio has a strong future in the technology sector, and the more we're able to help companies that are already here expand their investments only strengthens the state's position," said Lydia Mihalik, director of the Ohio Department of Development.

JobsOhio, One Columbus, and multiple county and local economic development teams are collaborating with Amazon Web Services to support the expansion.

The state is continuing to see large investments as Honda and LG Energy Solution continue construction on their $3.5 billion electric vehicle battery plant in Fayette County. That joint venture will be built about an hour's drive east of Dayton. The plant will employ about 2,200 workers, and executives of the joint venture expect to draw those workers from Dayton, Springfield, and other surrounding communities.

The retail side of Amazon also plans to occupy two new facilities that are being constructed in northern Montgomery County, near the Dayton International Airport. The new fulfillment centers are projected to create 1,800 jobs when the facilities open, possibly later this year.

©2023 Springfield News-Sun, Ohio. Distributed by Tribune Content Agency, LLC.