Apple Gets $208M in Tax Breaks to Build Iowa Data Centers

Apple will get $208 million in state and local tax breaks in exchange for agreeing to build a data center campus in Waukee, Iowa, just outside of Des Moines, the state’s capital.

Local news outlets reported yesterday that the company was in talks with officials about potentially building the campus there. The state’s economic development agency and Waukee City Council held meetings about the project this morning, followed by an official announcement at an event in Des Moines, where Apple CEO Tim Cook and Iowa Governor Kim Reynolds made speeches.

The $1.3 billion data center, whose first phase will see two buildings go up, will support Apple’s numerous online services, such as the App Store, Siri, and iMessage, according to a press release issued by the governor’s office.

Cook highlighted App Store in his speech. From CNN:

“This new data center will play a very important role in the App Store’s continued success. And as the App Store grows, we look forward to growing in Iowa.”

The data center will be powered by renewable energy, according to the press release.

Rendering of the future Apple data center in Waukee, Iowa (Image: Apple)

Google, Facebook, and Microsoft also have data centers in Iowa.

The tax incentive package consists of a $20 million state sales tax refund and a $188 million property tax break from Waukee, Fox Business reported.

Apple has agreed to create at least 50 permanent jobs at the data center, paying a minimum of about $30 an hour. The company will also pay $100 million into the new Public Improvement Fund, “dedicated to Waukee community development and infrastructure.”

The existing Apple data center campuses are in Newark, California; Maiden, North Carolina; Prineville, Oregon; and Reno, Nevada. The company also leases data center space from commercial landlords in other locations.