The investment is part of Amazon Web Services' plan to use renewable energy for 100 percent of its services.
The online retailer will hire 80,000 seasonal employees around the country.
Amazon is establishing a physical presence on the Purdue University campus in an attempt to reduce textbook prices.
Including Indianapolis, Amazon now offers Sunday deliveries in 17 cities.
In a 2012 settlement, Amazon agreed to start collecting sales taxes on items shipped to Indiana beginning this year.
A House committee has inserted the Amazon language into an unrelated bill, in an attempt to keep it alive for negotiations.
Members of the House of Representatives have complained Amazon negotiated a two-year grace period, then cut deals with other states that take effect sooner.
This summer, Indiana will begin collecting a 7 percent sales tax on products bought from online retailers, a cost that will likely be passed on to consumers.
Traditional stores say e-commerce has an unfair advantage as consumers are exempt from paying sales tax on purchases from out of state.
A poll from the Indiana Merchants for Tax Fairness shows 61 percent of Hoosiers say the same tax should be payed for local and online purchases.