Google will invest $7 billion to officially build a data center in Cedar Rapids and expand cloud and artificial intelligence infrastructure in its Council Bluffs complex, more than doubling its existing investment in Iowa.
State and city leaders say the May 30 announcement positions Iowa and Cedar Rapids as leaders in delivering AI technology to the world, and said it signals the state’s role in staying ahead of emerging technologies.
“This additional investment isn’t just a corporate decision,” Gov. Kim Reynolds said. “It’s a powerful endorsement of our state, of our communities and our potential. It’s a catalyst for prosperity and Iowa’s future, and we are so proud to stand alongside one of the most innovative companies in the world.”
Google has invested $6.8 billion in Iowa since launching its multimillion-dollar data center in Council Bluffs in 2007.
Company officials didn’t share how the $7 billion would be split between Iowa facilities.
Ruth Porat, president and chief investment officer of Alphabet and Google, said it is a privilege to live in a time where AI is emerging.
“It’s been called the golden era of American innovation, and I truly believe it is,” Porat said. “And our deep, longstanding investments in American technical infrastructure and in research development will help the world continue to lead in AI with all the benefits that come. It’s about the economic upside.”
Cedar Rapids data center getting $56 million in city tax incentives
The Iowa Economic Development Authority board in March 2024 signed off on the city of Cedar Rapids’ use of $56 million in tax abatements for the $576 million project, which is among the city’s largest on record.
The Cedar Rapids City Council approved a development agreement for the project in February 2024 with a company that was not named at the time to build one or more data centers on the city’s far south side near the Eastern Iowa Airport in the Big Cedar Industrial Center.
As part of that agreement, the project will create at least 31 jobs paying at least $31.44 per hour.
Cedar Rapids can leverage the state’s High-Quality Jobs program — which provides tax credits and refunds to businesses that move to or expand in Iowa — to give Google a 20-year break on property taxes that would otherwise increase with the completed data center’s assessed value.
But the whole data center campus is expected to create hundreds more jobs as well as temporary construction jobs.
Data centers on the rise in Iowa
Google has upped its investment in Iowa facilities, investing another $600 million in its already $5 billion, 1,000-acre Council Bluffs complex in 2022 and another $1 billion in 2024.
Microsoft and Meta have joined it in Iowa, building data centers in locations including Altoona and West Des Moines. Apple opened a 400,000-square-foot data center in Waukee in 2024.
This is a developing story and will be updated.
Marissa Payne covers the Iowa Statehouse and politics for the Register. Reach her by email at mjpayne@registermedia.com. Follow her on X, formerly known as Twitter, at @marissajpayne.
