Apple To Build Iowa Data Center, Gets $280M in Tax Breaks


Professor ofEconomics at Drake, Tom Rootsays it makes sense Apple wants to build its newest data center here.

It will get $208 million in state and local tax benefits, according to The Associated Press.

Tech giant Apple is looking to build its newest data center within the city limits of Waukee.

The deal approved by the Iowa Economic Development Authority includes a refund of $19.6 million in state sale taxes for Apple Inc. and a $188 million break on property taxes from Waukee, a booming suburb bordering Des Moines.

Money from Apple's Public Improvement Fund is already being put to good use. "We're honored Apple is choosing Iowa for the site of its most technologically advanced data center to date", said Iowa Governor Kim Reynolds.

And a year ago, Microsoft announced a third phase of its West Des Moines data centers, bringing the company's investments in the suburb to about $4 billion. The company plans to power the buildings with 100% renewable energy, state records show. "This gives us an opportunity with a global company like Apple to say we are the place to be, this is where your business should locate".

She defended the state's investments, telling reporters "these are credits, it's not a check" to attract a company willing to investment $1.4 billion in the first phase of a project that will boost Iowa's economy for the future. "And as the App Store grows, we look forward to growing in Iowa", Cook said.

"It is a minimal investment for the amount of investment that's being done in the state of Iowa", Reynolds added.

Apple will purchase 2,000 acres (8.09 square km) of land in Waukee, about 20 miles (32 km) west of Des Moines, to build two data centers.

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

"This is a legacy project that creates momentum over time", Dutcher said.

Apple is in the final stages of securing planning permission for its $1 billion data centre in Ireland, however the project has faced delays due to a high court appeal, lodged by local residents who fear the facility could be detrimental to the local environment.