There are a lot of major technology companies that spend huge sums of money on data centers throughout the country and all around the world. Reports indicate that Microsoft recently invested $678 million to build a new datacenter in West Des Moines, Iowa. The expansion is expected to create 29 new jobs in the area and was granted tax benefits worth about $20 million to Microsoft.
The datacenter expansion is being called Project Mountain and was revealed by the board of the Iowa Economic Development Authority. Microsoft has reportedly already purchased the land for the new data center expansion. Another software giant, Google, is also set to open a data center in Iowa. Google’s data center will open in a town called Altoona.
Why Iowa is a Prime Location for Data Centers
The new Google data center will be housed in a 476,000 ft.² building and will be the world’s longest data center. Large companies are moving their data center efforts to Iowa in part thanks to the fact that the state doesn’t charge tax on electricity and has inexpensive land along with tax benefits. Iowa’s central location in the United States also makes it an ideal spot for data centers, as it allows for efficient data distribution across the country. Additionally, the state has a relatively low risk of natural disasters, which is a crucial factor for data center stability and security.
Iowa expects more projects of similar scale to come to the state in the future. The state’s commitment to renewable energy is another attractive feature for tech companies. Iowa is one of the leading states in wind energy production, which aligns with the sustainability goals of many tech giants. For instance, both Microsoft and Google have made significant commitments to reducing their carbon footprints, and Iowa’s renewable energy resources can help them achieve these goals.
The Economic Impact of Data Centers
The economic impact of these data centers extends beyond the immediate job creation. The construction phase of these projects typically involves hundreds of workers, providing a temporary boost to the local economy. Once operational, data centers require a range of services, from maintenance and security to local suppliers for various operational needs. This creates a ripple effect, benefiting local businesses and contributing to the overall economic health of the region.
Moreover, the presence of major tech companies can attract other businesses and investments to the area. Smaller tech firms and startups often cluster around larger companies, hoping to benefit from the established infrastructure and potential partnerships. This can lead to the development of tech hubs, fostering innovation and further economic growth.
The investment by Microsoft and Google in Iowa’s data centers is a testament to the state’s favorable conditions for such projects. With its tax incentives, inexpensive land, renewable energy resources, and strategic location, Iowa is poised to become a significant player in the data center industry. As more companies recognize these advantages, we can expect to see continued growth and investment in the region, bringing with it numerous economic benefits.
via Venture Beat
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