Google is still “evaluating the potential” for a data center complex in the Cedar Rapids area, a spokesperson said Friday after the state signed off on $56 million in incentives for the project.
The Iowa Economic Development Authority board approved the tax abatements for the $576 million project, which has the potential to be the city’s largest on record, and revealed that Google was the previously unnamed company behind it. Cedar Rapids approved a development agreement with the entity last month, the Gazette reported, for the construction of one or more data centers on the city’s far north side near the Eastern Iowa Airport.
But in an email to the Des Moines Register on Friday, a Google spokesperson said plans have yet to be finalized.
“We are always planning for future capacity needs,” it said. “These are complex projects and development of the site is subject to a variety of factors including but not limited to competitive energy rates along with a sustainable and sufficient energy supply.”
The project would create 31 jobs paying at least $31.44 per hour. The IEDA granted Cedar Rapids the ability to leverage the High Quality Jobs program — which provides tax credits and refunds to businesses that move to or expand in Iowa — to give Google a break on property taxes that would otherwise increase with the completed data center’s assessed value.
The company’s exemption would last for a period of 20 years, an IEDA report said. The state has yet to dole out any funds for the center.
More:Why data centers love coming to Iowa
If Google does proceed, construction could begin this summer, with hiring expected to take place in 2025. The center would be fully functional by 2026.
“We’re very excited about the project today, but also for what has occurred and what will occur in Cedar Rapids over the coming years,” City Manager Jeff Pomeranz told the IEDA board. “We’re really, from an economic development perspective, (going) in a very, very positive direction.”
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Google first came to Iowa in 2007 with a multimillion-dollar data center in Council Bluffs. In 2022, the company invested another $600 million in its already $5 billion, 1,000-acre complex, bringing its total workforce to 281.
Microsoft and Meta have joined it in Iowa, building data centers in locations including Altoona and West Des Moines. Apple began preparing for construction of a 400,000-square-foot data center in Waukee in 2021.
Factors that make the state attractive to tech companies include an abundance of inexpensive, environmentally friendly wind energy, access to high-speed fiber optic connections and tax incentives.
The IEDA noted that Google’s infrastructure requirements have increased as its customer base and demand for services have grown. The company announced earlier in March that it would be investing $1 billion in a new data center in Kansas City, Missouri, with Google executive Monique Picou saying it will play an essential role in supporting the company’s artificials intelligence innovations.
Addison Lathers covers growth and development for the Des Moines metro. Reach her at 608-931-1761 and ALathers@registermedia.com, and follow her on Twitter at @addisonlathers.
