Big data gets a boost

Amazon centers will create jobs, foster Ohio’s high-tech growth

Central Ohio’s reputation as a hotspot for “big data” projects has gotten a significant boost with Amazon’s announcement that it will bring three data centers to the area. The leading online retailer will join IBM, Cardinal Health and other major companies that have recently moved to or expanded their data operations in the Columbus region.

Amazon is expected to employ 120 at data centers it recently announced in Dublin, Hilliard and New Albany; statewide, the number is anticipated to rise to 1,000. The company’s total investment over the next three years in central Ohio alone is an estimated $1.1 billion.

As Gov. John Kasich said at a Friday press conference, this is a “huge deal.” In addition to good jobs with an average salary of about $80,000, this furthers the aim of regional development group Columbus 2020 to focus on big data as a prime area of growth over the next few years. And these types of businesses tend to cluster around each other, attracted by a skilled workforce and the proximity to Ohio State University and other colleges.

In coming here, Amazon also boosts Ohio’s national reputation as a growing center for high-tech job creation. The $5 billion company is a major player in the growing field of cloud computing, which is the delivery of on-demand computing services such as servers, storage and applications to companies and individuals. This announcement broadcasts the message to business leaders about Ohio’s attractiveness and businessfriendly atmosphere.

“The impact on other businesses and companies will be felt for years to come,” said John Minor, president and chief investment officer of state economic-development

group JobsOhio, at the announcement with Kasich and Amazon vice president of global public policy Paul Misener.

Kasich stressed that the deal gives Ohio a chance to showcase the state’s financial strength and the effect of its tax cuts on attracting more businesses to the state.

For his part, Misener said: “We couldn’t pick a better partner than the state of Ohio.” Development officials at the state and in each of the three suburbs stepped up with significant incentives to land Amazon, which is appropriate given the size of its investment and job creation. The state has approved tax incentives for the project valued at an estimated $81 million. That isn’t a handout, but a benefit that Amazon will earn as it actually invests and creates jobs here.

The best news is that Amazon said last week’s announcement is “just the beginning,” as Misener said; based on Ohio’s workforce and good location close to much of the U.S. population, the company also plans other operations in the state, including a distribution center. And if Amazon decides to follow through on musings by founder Jeff Bezos about using drones for delivery, Ohio can help the company with that, too, since Ohio is a leader in drone development.

This should be the start of a mutually beneficial relationship.

In coming here, Amazon boosts Ohio’s national reputation as a growing center for high-tech job creation.