The South Bend Data Center Market: a Rising Hub for Digital Infrastructure

South Bend, Indiana, traditionally known for its industrial roots, is rapidly transforming into a significant hub for digital infrastructure. This evolution is fueled by substantial investments from some of the largest tech giants in the world, positioning the city as a prime destination for data center development and operations in the Midwest. As companies seek to expand their digital infrastructure, South Bend’s strategic location, skilled workforce, and supportive business environment are making it an increasingly attractive destination.

Hyperscale and AI Data Center Developments in the South Bend Market

One of the most significant developments in the South Bend region is Amazon Web Services’ (AWS) announcement of an $11 billion investment to build a new data center campus. SBR Chamber shared that this project, the largest capital investment in Indiana’s history, is expected to create over 1,000 new jobs. AWS’s decision reinforces South Bend’s growing importance as a targeted location for cloud computing infrastructure, and these new data centers will play a critical role in supporting various industries including automotive, healthcare, and manufacturing​.

Google has also recognized the potential of the broader Indiana region, committing $2 billion to establish a new data center in nearby Fort Wayne. This facility will bolster Google’s AI and cloud operations, serving customers across the globe. The investment will generate approximately 200 new jobs and is part of Google’s broader strategy to integrate clean energy resources into its operations, further aligning with the state’s focus on sustainable industrial growth​.

Adding to the momentum of the Midwest data center growth, significant investments from Microsoft in the Indiana market were reported in early June. According to Data Center Dynamics, Microsoft plans to invest $1 billion on a 245,000 sq. ft. data center campus in Northwest Indiana and recently acquired 939 acres in Mishawaka, a short drive from South Bend, to build another large data center campus. Microsoft’s expansion highlights the region’s appeal due to its ample infrastructure, skilled labor pool, and supportive economic policies. Microsoft’s planned Mishawaka data center campus alone is expected to create over 300 jobs and will incorporate advanced technologies to ensure operational efficiency and sustainability​.

South Bend’s Competitive Edge in Tech Development

South Bend’s emergence as a tech infrastructure hub is not coincidental. The city offers several advantages that have attracted these significant investments. Its proximity to major metropolitan areas, particularly Chicago, provides easy access to large data hubs while benefiting from lower operational costs compared to larger cities. Additionally, Indiana’s favorable tax incentives and investment in infrastructure make the region an ideal location for data centers.

The city’s efforts to cultivate a skilled workforce are also making a significant impact. Local educational institutions are collaborating with tech companies to prepare residents for careers in the expanding data center industry. For instance, Google has partnered with Ivy Tech Community College to offer training programs that equip locals with the skills needed for these jobs, strengthening the area’s potential as a sustainable tech center.​

The 1547 Union Station South Bend Data Center: Strengthening Connectivity in a Fast-Growing Market

Amidst these developments, 1547 has positioned itself as a critical piece of the puzzle in the fast-growing South Bend tech market. With its recent acquisition of the South Bend data center, located in the historic Union Station, 1547 is enhancing its portfolio of connectivity-focused facilities. Ranked among the top carrier hotels in the United States, the Union Station South Bend facility connects to 17 unique fiber carriers and 11 internet service providers, making it a vital node in the nation’s digital infrastructure. Its strategic location on the transcontinental fiber system that links Chicago to the East Coast further amplifies its importance, ensuring seamless data transmission across key regions.

South Bend Data Center Expansion Plans

Additionally, the facility will see further upgrades under 1547’s ownership and management to meet the increasing demands for connectivity from enterprises and service providers. In addition to the existing critical IT capacity of 2.9 MW, 1547 plans to develop another 1.6 MW of incremental power capacity, with 600 kW capacity available in Q1 2026 and 1,000 kW capacity available in Q1 2028.

Why South Bend?

This acquisition aligns with 1547’s broader strategy of expanding its presence in strategic markets across the United States, with a particular focus on carrier hotels and interconnected buildings. As South Bend continues to grow as a center for tech infrastructure, 1547’s investment in the region reinforces its commitment to providing state-of-the-art data center solutions that support the evolving needs of the digital economy​.

The Future of the South Bend Data Center Market

South Bend’s transformation into a major tech hub center highlights its growing significance in the broader tech ecosystem, driven by strategic investments from industry leaders like AWS, Google, and Microsoft. As these companies expand their presence in the region, South Bend’s role in the digital economy will continue to strengthen. In this evolving landscape, 1547 is not only participating in South Bend’s rise – it is providing the essential connectivity to help shape the tech infrastructure of the region.

Click here to learn more about 1547’s Union Station South Bend data center or schedule a tour!