Apple to build a new data center, 207.8 million US dollars incentives

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Apple will build a data center of 1.375 billion US dollars in Waukee, Iowa, Apple and state officials said on Thursday, with 207.8 million US dollars in incentives approved by the Iowa Economic Development Authority and Waukee city council.

Apple will purchase 2,000 acres (8.09 square km) of land in Waukee, about 20 miles (32 km) west of Des Moines, to build two data centers. The company will receive 19.65 million US dollars of investment tax credit for creating 50 jobs.

Apple said the project will generate more than 550 jobs in construction and operations, but did not specify 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."

Apple Chief Executive Officer Tim Cook shakes hands with Iowa Gov. Kim Reynolds before discussing Apple plans to build a data center. /Reuters Photo‍

Cook said Apple will contribute up to 100 million US dollars toward a "public improvement fund" for the city of Waukee, adding the first project supported by the fund will be a youth sports complex that "will be open to all."

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

State subsidies to technology employers have become a key issue in Midwestern states such as Wisconsin, where Foxconn, formally known as Hon Hai Precision Industry Co Ltd, is seeking three billion US dollars in subsidies for a LCD panel plan of ten billion US dollars. The incentive package passed Wisconsin's Republican-controlled state Assembly last week by a 59-30 margin.

Foxconn is a major Apple supplier, but is not expected to make any Apple products at its proposed U.S. plant.

The Iowa data center will join Apple facilities in California, Nevada, Oregon and North Carolina, which also host services such as iCloud, Apple Music and the App Store.

Tim Cook (L) walks with Iowa Lt. Governor Adam Gregg /Reuters Photo

"This new data center will play a very important role in the App Store's continued success," Cook said. "As the App Store grows, we look forward to growing in Iowa."

Facebook, Alphabet's Google and Microsoft also maintain data centers in Iowa.

Apple will spend 110 million US dollars to acquire and prepare the land for its data centers in Iowa, according to economic development officials.

The bulk of the costs, 620 million US dollars, will go toward construction. Apple will spend 600 million US dollars on computer equipment, with 45 million US dollars going toward other equipment.

Source(s): Reuters