Google is “considering the possibility” of a data center complex in the Cedar Rapids area, a spokesperson said Friday after the state approved $56 million in incentives for the project.
The Iowa Economic Development Authority's Board of Directors has approved tax breaks for a $576 million project that could be the largest in the city's history, and the company behind the project, which was previously unnamed, has been announced on Google. revealed something. Cedar Rapids last month approved a development agreement with the then-unnamed company to build one or more data centers near the Eastern Iowa Airport on the city's northernmost side, the Gazette reported. .
However, a Google spokesperson said in an email to the Des Moines Register on Friday that plans have not yet been finalized.
“We are always planning for future capacity needs. These are complex projects and site development depends on a variety of factors, including competitive energy tariffs and a sustainable and sufficient energy supply. subject to, but not limited to, the following:” the company said.
The project will create 31 jobs paying at least $31.44 an hour. IEDA authorizes Cedar Rapids to take advantage of the Quality Jobs Program, which provides tax credits and rebates to companies relocating or expanding in Iowa, with a fixed amount that increases based on the assessed value of the completed data center. Google was exempted from property taxes. .
The company's exemption will last for 20 years, according to the IEDA report. The state has not yet provided funding for the center.
more:Why data centers like coming to Iowa
If Google moves forward, construction is expected to begin this summer, with hiring expected to begin in 2025. The center will be fully operational by 2026.
“We are very excited about this project today, but we are also very excited about what has happened in Cedar Rapids so far and what will happen in the next few years,” said City Manager Jeff.・Mr. Pomerantz spoke at the IEDA board meeting. “From an economic development perspective, we are moving in a very, very positive direction.”
Google's investment in Iowa could grow to more than $6 billion
Google first entered Iowa in 2007, building a multimillion-dollar data center in Council Bluffs. The company has already invested $5 billion in 2022, and an additional $600 million in the 1,000-acre complex, bringing its total number of employees to 281 people.
Microsoft and Meta are joining forces in Iowa, building data centers in places like Altoona and West Des Moines. Apple has begun preparations to build a 400,000-square-foot data center in Waukee in 2021.
Factors that make the state attractive to tech companies include an abundance of cheap and environmentally friendly wind energy, access to high-speed fiber-optic connections, and tax incentives.
IEDA noted that Google's infrastructure requirements are increasing as Google's customer base and demand for its services grows. In early March, the company announced it would invest $1 billion in a new data center in Kansas City, Missouri, which Google executive Monique Picou said will play a key role in supporting the company's artificial intelligence innovations. He said it would be.
Addison Lazars is responsible for the growth and development of the Des Moines Metro. Contact us at 608-931-1761 and ALathers@registermedia.com and follow @addisonlathers on Twitter.