Midwestern states have become a magnet for data centers of tech companies in the state.
Apple has disclosed that it will build a $1.375 billion data center in Waukee, Iowa and receive $207.8 million in incentives from the Iowa Economic Development Authority and Waukee city council.
To this end, Apple is set to purchase 2,000 acres (8.09 square km) land in Waukee to build two data centers. In Addition to the $207.8 million incentive, it will also receive $19.65 million as tax credit for creating 50 jobs.
Apple has disclosed that the project will provide jobs to more than 550 employees, it however did not say how many of those jobs would be long-term positions.
Speaking alongside Iowa Governor Kim Reynolds, Apple Chief Executive Tim Cook said the facility “will create hundreds of jobs for people in Iowa from construction to engineering.”
Cook has also stated Apple will contribute up to $100 million toward a “public improvement fund” for the city of Waukee and went on to say that the first project supported by the fund will be a youth sports complex that “will be open to all.”
According to the city’s economic development officials, the bulk of the subsidy will be channeled towards a $188.2 million property tax abatement of 71% spread over 20 years.
In mid-western states such as Wisconsin, state subsidies to technology companies are becoming increasingly common, with Foxconn, also known as Hon Hai Precision Industry Co Ltd, set to receive $3 billion in subsidies for a $10 billion LCD panel plant in the state.
Although Hon Hai Precision Industry is one of Apple’s major suppliers, it is however not expected to many any Apple products at its proposed U.S. site.
As for Apple, its upcoming Iowa data center will join its other such facilities located in Nevada, California, Oregon and North Carolina, which host services such as the App Store, iCloud and Apple Music.
“This new data center will play a very important role in the App Store’s continued success,” said Cook said. “As the App Store grows, we look forward to growing in Iowa.”
Incidentally, Google, Facebook Inc and Microsoft also have data centers in Iowa.
As per Iowa’s economic development officials, Apple will spend $110 million to acquire and prepare the land for its data centers and the bulk of the $620 million set to go towards the construction of the data center.
Apple is also likely to spend $600 million on computer equipment, with $45 million going toward other equipment.