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Microsoft to Build Iowa Data Center for $670 Million

The software giant, Microsoft is planning on building a data center in West Des Moines, Iowa. The investment cost will amount to a whopping $670 million.

Jun 24 2013, 3:51am CDT | by

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Microsoft to Build Iowa Data Center for $670 Million

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Microsoft to Build Iowa Data Center for $670 Million

Microsoft to Build Iowa Data Center for $670 Million

The new plan by Microsoft has been termed Project Mountain. Tax breaks have been already given to this data center. It has been purported to create 29 new jobs. There were other companies looking forward to doing the same thing in Iowa. Facebook is one of them. Google too has invested in the selfsame venture. Project Mountain was the resultant fruitful venture of an annual contract between several agencies. These included Microsoft, the city, and the State of Iowa itself. Iowa has tried to lure data centers to its cities. A great deal of leniency in the form of tax credits will be awarded to Microsoft.

According to the DesMoinesRegister, $20 million tax credit has been given to Microsoft by Iowa Economic Development Authority Board for its $700 million investment. Microsoft could not be contacted regarding the new investment. The project premises will accommodate servers, networking paraphernalia and offices for Microsoft’s cloud services. Microsoft already has a number of centers spread throughout the world. Singapore, Hong Kong, Ireland and the Netherlands come to mind. Up until now it had been an enigma: the name of the company behind the multi-million dollar project in West Des Moines, Iowa. But now it has been revealed and Microsoft is the one behind the whole shebang. Microsoft had already invested in this project. The current addition of about $700 million makes the grand total investment reach one billion dollars.

Basically, Iowa has always encouraged a culture of technology. Many other companies have been attracted like Microsoft to come to Iowa’s cities to build data centers. A great deal of interest has been generated thanks to a climate favorable to technological growth. Actually, Microsoft’s cloud services had expanded beyond its capacity and so this data center had to be built. The State of Iowa was ready with its tax breaks. It provided incentives to Microsoft to build its facilities in West Des Moines. And one good thing about this act of creation is that new jobs will be generated in the process. All business growth means an increase in career opportunities. The race is definitely on.

Various companies are hot on each others heels in a bid to reach the number one spot. Microsoft is the most prominent one among them but for how long one cannot say. Ultimately, where there is competition, every competitor has to remain on its toes. This is in the consumers’ interest of course since it leads to better products and services.

Image Credit: Getty Images


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<a href="/latest_stories/all/all/20" rel="author">Sumayah Aamir</a>
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