Apple gets $208M in tax breaks to build Iowa data center

Javier Howell
August 25, 2017

Iowa is a popular location for data center operators, with Google, Facebook and Microsoft (although its latest project may be cut short due to an impending water bill), having built their own facilities in the state.

At present it has merely been labelled as a "review of application for investment", but according to sources obtained by the Des Moines Register, Apple does have concrete plans to build a data center on a 3,500 acre (5.46 square miles) piece of annexed land in Waukee, Dallas County.

"It's anticipated that a data center employs 1,688 local workers during the construction phase of this project", Murray said.

Apple plans to purchase 2,000 acres of land in Waukee.

Apple told CNBC "Mad Money" host Jim Cramer earlier this year that company would create a $1 billion fund to promote advanced manufacturing jobs in the United States. The company included a kicker, though, with a pledge of "up to" US$100 million to a Public Improvement Fund.

Apple said the new data center will support services like Siri, iMessage and Apple Music in North America.

The bulk of the subsidy is a planned $188.2 million property tax abatement of 71 percent over 20 years provided by the city of Waukee, according to economic development officials. "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".

"It's always unfortunate that we always focus on 'well, it's just 50 jobs, ' because we're really not impacting what this really means and how this is really changing the knowledge economy in Iowa", Durham said.

The decision was lauded by Iowa Governor Kim Reynolds, a Republican.

"This new data center will play a very important role in the App Store's continued success", Cook said. "Many individuals and organizations were involved in making this project a reality-one that will pay dividends for years to come". "This is an investment in Iowa's future".

Documents provided ahead of a special Iowa Economic Development Authority meeting today provided more details on the Apple deal that was first reported Wednesday. More than 550 jobs will also be supported by construction, Apple said in a statement.

Other reports by Insurance News

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