Moneycontrol PRO
HomeWorldAmazon’s colossal Indiana data centre campus aims to redefine the future of AI computing

Amazon’s colossal Indiana data centre campus aims to redefine the future of AI computing

With 30 planned buildings, 2.2 gigawatts of power, and billions in incentives, Project Rainier is Amazon’s boldest bet on artificial intelligence yet.

June 25, 2025 / 13:11 IST

On a sprawling 1,200-acre plot of farmland in New Carlisle, Indiana, Amazon is building what may become the most advanced AI-focused data centre campus in the world. Just a year ago, the site was a quiet cornfield. Today, seven football-stadium-sized data centres stand, and the company plans to build around 23 more. Called Project Rainier, the complex is designed to serve the massive computing demands of artificial intelligence, with one key customer in mind: Anthropic, the ambitious AI start-up developing systems meant to rival the human brain.

Amazon’s vision is clear — this is not just a data centre, but a tightly connected computing ecosystem, the New York Times reported. Hundreds of thousands of its custom-built Trainium 2 chips will be installed across the site, forming a single powerful machine. Designed in partnership with Israeli chipmaker Annapurna Labs and tailored with input from Anthropic, the chips are less exotic than Nvidia’s top-tier models but are engineered for energy efficiency. By packing more of these simpler chips into each building and optimizing their layout, Amazon claims it can match or exceed the performance of rival systems without overloading the power grid.

Massive infrastructure, fast-tracked construction

The scale of the operation is staggering. The completed project will require 2.2 gigawatts of electricity—roughly equal to the power needed by a million homes. Four construction firms are working in tandem to accelerate the buildout, with bulldozers constantly reshaping the landscape to accommodate new foundations. Each week, about 4,000 workers are onsite. Amazon’s rapid pace is not just about tech ambition; it's also strategic positioning in the race for AI dominance.

Tax incentives have played a big role in supporting the project. Indiana legislators approved a 50-year sales tax break valued at around $4 billion. Additional county-level incentives could bring the total to $8 billion. Amazon has promised $11 billion for the first 16 buildings alone—now likely a fraction of the final cost.

A strain on local resources — and the power grid

Amazon’s water and power needs are already reshaping the region. The company sought permits to pump 2.2 million gallons of water per hour to support construction and cooling systems. Locals have begun to report dry wells, while environmental groups worry about the company’s plans to build over a 10-acre wetland in the centre of the campus.

Meanwhile, American Electric Power, the local utility, said the project would account for half of Indiana’s projected energy load growth through 2030. Much of that electricity will come from natural gas.

Building the future of AI

Project Rainier is intended to serve more than just Anthropic’s training needs. Amazon plans to use the infrastructure to deliver AI services across industries, from cloud software to consumer applications. “We expect to use these same clusters for multiple needs,” said Prasad Kalyanaraman, a senior Amazon executive. The company is betting that its vast, vertically integrated infrastructure—not just cutting-edge algorithms—will define the next generation of AI.

As rivals like Meta, OpenAI, and Google race to scale up, Amazon’s massive Indiana investment signals that the age of megastructure computing has truly begun.

Moneycontrol World Desk
first published: Jun 25, 2025 01:11 pm

Discover the latest Business News, Sensex, and Nifty updates. Obtain Personal Finance insights, tax queries, and expert opinions on Moneycontrol or download the Moneycontrol App to stay updated!

Subscribe to Tech Newsletters

  • On Saturdays

    Find the best of Al News in one place, specially curated for you every weekend.

  • Daily-Weekdays

    Stay on top of the latest tech trends and biggest startup news.

Advisory Alert: It has come to our attention that certain individuals are representing themselves as affiliates of Moneycontrol and soliciting funds on the false promise of assured returns on their investments. We wish to reiterate that Moneycontrol does not solicit funds from investors and neither does it promise any assured returns. In case you are approached by anyone making such claims, please write to us at grievanceofficer@nw18.com or call on 02268882347
CloseOutskill Genai