Visitors are seen at the Intel booth during the China Digital Entertainment Expo and Conference, also known as ChinaJoy, in Shanghai, China July 30, 2021. REUTERS/Aly Song

OAKLAND, Calif./NEW YORK, Jan 21 (Reuters) – Intel Corp’s plan to build a $20 billion chip-making complex on the outskirts of Columbus, Ohio is the clearest sign of a a booming technology sector in the American Midwest, a development that is sure to increase business competition for workers and resources.

Intel’s investment is the state’s largest ever, but the Columbus suburb of New Albany, where Intel will build two chip factories, has already seen an influx of data centers, including from Amazon.com Inc, of Facebook’s parent company Meta (FB.O) and Alphabet Inc (GOOGL.O) Google.

Last August, Google increased its investment in New Albany by $1 billion.

“Facilities like (Intel’s factories), all of these jobs are high-skilled jobs,” Commerce Secretary Gina Raimondo said during the announcement in Ohio. “All of this manufacturing at all levels, not just doctorates, requires some training,” she added, calling for more apprenticeship programs.

Intel’s first two chip factories will create 3,000 jobs, and the company plans up to eight factories over time. It has committed $100 million to work with Ohio universities and community colleges to build a workforce in the chip industry.

While other rust belt centers have suffered over the decades, Ohio’s state capital, Columbus, along with Ohio State University and six Fortune 500 companies, including Nationwide Mutual Insurance Co. [RIC:RIC:MNUIC.UL] and Cardinal Health Inc (CAH.N), did well.

Also, it was an early winner in the construction of the logistics and warehousing industry thanks to its location near the important Interstate 70 highway that crosses the United States.

Abundant water and stable energy resources were also key to winning the deal, as Intel needs huge natural resources, although it said it aims to be powered by 100% renewable energy and obtain positive net water.

“For years Ohio has said we have an abundance of water and that would be a strength for industry in this country. And that has proven to be an advantage here for us,” said JP Nauseef, president of JobsOhio, which helped bring Intel’s investment to the state.

Reporting by Jane Lanhee Lee and Tim Aeppel; Editing by Peter Henderson and Alistair Bell

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