Apple's next data center will be in Iowa

The company is reportedly planning to follow Google, Facebook, and Microsoft in building a data center in Iowa.

"It's anticipated that a data center employs 1,688 local workers during the construction phase of this project", Murray said.

Apple will purchase 2,000 acres of land in Waukee to build two data centers. The company included a kicker, though, with a pledge of "up to" US$100 million to a Public Improvement Fund. Incentives, usually in the form of tax breaks, are common way state economic development officials lure data center development to their states. The facility will be used, "to better serve North American users of iMessage, Siri, the App Store and other Apple services".

The bulk of the subsidy is a planned $188.2 million property tax abatement of 71 percent over 20 years provided by the city of Waukee, according to economic development officials. This gives us the opportunity with a global company like Apple to say we are the place to be.


Reynolds, speaking briefly to reporters after the announcement, defended the use of the state's $19.6 million in tax credits at a time when the state budget shortfall that may require a special legislative session to address, saying it's a minimal investment for the return Iowa will get.

The decision was lauded by Iowa Governor Kim Reynolds, a Republican.

Details of the Iowa data center were announced on Apple's news blog today.

Tina Hoffman, spokeswoman for the Iowa Economic Development Authority, told The Washington Post that building the project will bring more wealth to the community. "Many individuals and organizations were involved in making this project a reality-one that will pay dividends for years to come".


Every year thereafter, the data center supports 157 local jobs paying $7.8 million in wages, injecting $32.5 million into the local economy and generating $1.1 million in revenue to state and local governments.

"With a billion-plus investment, it will also create many spinoff and construction-related jobs", she said.

Iowa is well-positioned to continue attracting data center investments in the future because of its geographic location safe from hurricanes, earthquakes and rolling blackouts, coupled with affordable electric rates and a high percentage of electricity generated by the wind.



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