Microsoft Planning To Build Its Billion Dollar Data Center In Iowa

Azure Thinking

It was today reported that Microsoft will build its next billion dollar data center in southeast West Des Moines in Iowa. This upcoming data center will be one of the Microsoft’s largest centers in the U.S., according to plans unveiled today. This “Project Alluvion” is valued at $1.1 billion and will take 154 acres in West Des Moines’ southeast corner. Microsoft already has a data center in the region and the total investment in West Des Moines to just under $2 billion. Microsoft will get incentives from the state government by few millions, but Microsoft has promised to offer 84 jobs in this area.

During its meeting Friday, the Iowa Economic Development Authority Board approved granting Microsoft a $20.3 million sales tax rebate for the project. That tax rebate would be available until 2021. Those state incentives come on top of the $18 million in incentives already promised by West Des Moines.

To receive those incentives, Microsoft has promised to add at least $255 million at minimum in taxable value to the city of West Des Moines. That minimum value, West Des Moines officials said, would translate to about $8 million annually in property taxes the city would collect from Microsoft once the data center is fully built out.

“This is a staggering amount of property tax dollars,” West Des Moines Mayor Steve Gaer told the Register. From the state level, Microsoft has to create 84 jobs by full build out, 66 of which must have a wage of $24.32 an hour. That wage is 120 percent of Polk County’s qualifying wage threshold.

Source: Register

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