Microsoft to Invest $678 Million in Iowa Data Center

Microsoft will spend $678 million to expand its data center in Iowa. The larger facility will support cloud computing initiatives, including Office 365.

The Des Moines Register’s Donnelle Eller first revealed the news, reporting, “The Iowa Economic Development Authority Board approved today $20 million in tax credits for Microsoft, which plans to invest nearly $700 million in a data center in West Des Moines. The board said Microsoft was behind ‘Project Mountain’ at a meeting this morning.”

According to PCWorld’s John Ribeiro, “Microsoft is investing $678 million in the expansion of its data center in West Des Moines, Iowa, to bolster online offerings such as Xbox Live and Office 365.”

The Register’s Gavin Clarke added, “Construction on the new data centre is due to begin later this year and be finished in 2015. It is expected to create 29 new jobs. New fibre will also be laid.”

VentureBeat’s Christina Farr noted, “Microsoft isn’t the only tech company with a data center in the region. In April, Facebook confirmed plans to open a server farm in Altoona, Iowa. The 476,000 square foot building is the world’s longest data center. Google opened a data center in Council Bluffs, Iowa, in 2009, and has subsequently announced expansion plans.”