Microsoft to build $1.13 billion data center in Iowa

Microsoft is getting ready to expand its data center efforts with a new location in Iowa that will cost $1.13 billion (yep, that's not a typo) to build. The official announcement was made on Friday by local and state government officials.

The Quad City Times website reports that the actual location will be in West Des Moines. The data center, which has been rumored to be in development in the past under the code name "Project Alluvion" will be built on 154 acres in the city and take up to five years to build, in four phases. Eighty-four jobs will be created to help run the data center, which will be used to help run web portals for Microsoft's online services.

Both local and state governments will offer Microsoft a total of $87 million in investments, research, sales tax credits and refunds to help in building the project. The company has already invested just under $1 billion in Iowa and this new data center will see that investment reach a total of $2 billion, which is the largest ever in Iowa's history for a single company. West Des Moines estimate it will create $8.2 million in yearly tax revenues for the city.

Source: Quad City Times | Microsoft image via Shutterstock

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17 Comments

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[Quote=trojan_market said,]only 84 jobs for $1.1B project? peculiar. little bit.[/quote]

More jobs for the actual construction, but once you get it built And a datacenter doesn't require a ton of employees once you get it online.

alarson83 said,

More jobs for the actual construction, but once you get it built And a datacenter doesn't require a ton of employees once you get it online.


which is probably why it is more efficient than Hosting your site. I can see in few years most companies ditch their own servers and moving to Cloud servers due to decreasing cost of these data centers and improving their infrastructure.

Mr. Dee said,
While the local government and residence switch to Chromebooks, Android and iOS devices.
If they had to set up shop only in places where none of these are in use they'd have nowhere to go. :)

Edited by zhangm, Apr 20 2014, 11:27pm :

Mr. Dee said,
Still doesn't mean people would touch it with a 10 foot pole.
What are you talking about now? Win8? Plenty of people touching it, literally, and enjoying it as well.

That's more than the GSP for Iowa, no? :p

IOWA when driving west on I-80: In Our Way Again ^_^

But good news for Iowa, this will surely help the economy

So the government is going to give Microsoft $87 million, and it'll take over 10 years to recoup that. What a stupid move. Why does Microsoft (or any company for that matter) need incentives? What, was Microsoft going to build it somewhere else if they were offered more money?

GlenH said,
What, was Microsoft going to build it somewhere else if they were offered more money?

I dunno about this specific case, but that's a lot of times exactly how it works with businesses looking to build new facilities.

GlenH said,
So the government is going to give Microsoft $87 million, and it'll take over 10 years to recoup that. What a stupid move. Why does Microsoft (or any company for that matter) need incentives? What, was Microsoft going to build it somewhere else if they were offered more money?

Governments offer incentives because it usually means local jobs which helps to improve the local economy. Both of which end up helping the very same government.

GlenH said,
So the government is going to give Microsoft $87 million, and it'll take over 10 years to recoup that. What a stupid move. Why does Microsoft (or any company for that matter) need incentives? What, was Microsoft going to build it somewhere else if they were offered more money?

West Des Moines resident here.

1. A lot of times the incentives are infrastructure improvements. These will be used by more than MS in the future, and they also are financed against future tax revenues. This area is an attractive one to data center operators due to cheap power and water and relatively moderate weather. Facebook has a data center under construction and I believe yahoo has one too. Wouldn't surprise me to see Google or amazon locate here before too long in this 'tech corridor' where there is a well developed infrastructure including access to fiber.

2.the tax revenues listed are greater than the property taxes listed. Everyone involved in the construction and operation of this facility will also be paying income taxes.