Iowa approves large tax incentive for Microsoft’s new data center

The Iowa Economic Development Authority approved a $1.1 billion incentive for Microsoft's data center in West Des Moines in April, according to The Des Moines Register. Microsoft currently has one data center in West Des Moines, Iowa, but has been planning this expansion for years.

Finalizing the necessary property agreements pushed back the beginning of the project but now construction is ready to begin. The building of the facility is set out in four stages and will take five to seven years to complete, according to The Des Moines Register. The finished facility, which will actually be multiple buildings, will sit on 154 acres and be a total of 1.16 million square feet when it's finished, The Des Moines Register reported. This will be one of the largest data centers in the world, based on Microsoft's current plans.

Microsoft will receive a $20.3 million sales tax rebate on the project, called "Project Alluvion," until 2021 in addition to $18 million in incentives the state has already provided. When the data center is finished, it will add about $8 million in property tax revenue to the city's revenues, The Des Moines Register reported. 

To receive the tax benefits, Microsoft has agreed to add at least $255 million of taxable value to the city of West Des Moines. The company is also required to create 84 new jobs by the time the facilities are finished. Of the new jobs, 66 must have a wage of at least $24.32 an hour.

Businesses intending to build large facilities that will create the need for new positions should partner with operations and engineering recruiters. They have the time and experience to find the most qualified workers for the jobs.