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Microsoft Plans $677.6 Million Expansion To Its West Des Moines, Iowa, Data Center

Microsoft plans a $677.6 million expansion to its existing data center in West Des Moines, Iowa.The first major technology company to build a data center in Central Iowa, Microsoft has operated its West Des Moines facility since 2009.

Microsoft’s project was awarded state incentives by the Iowa Economic Development Authority Board. The company will be eligible to receive up to $20 million in tax credits, including $15 million in a sales and use tax refund paid during construction and a $5 million investment tax credit, for completing the $677.6 million capital investment project in West Des Moines. The project will create 29 new jobs and more than 200 jobs during construction, the Greater Des Moines Partnership said.

Local incentives from the City of West Des Moines were also approved. Site work for the expansion project is expected to begin later this summer with construction anticipated late 2013 and a scheduled completion by the end of 2015.

“Microsoft has enjoyed a strong working relationship with the state of Iowa and West Des Moines and we are excited about our latest expansion project,” said Christian Belady, General Manager of Data Center Services at Microsoft. “The expansion of the West Des Moines data center is a win-win, bringing both new jobs to Iowa while supporting the growing demand for Microsoft’s cloud services. The new facility is designed to provide fast and reliable services to customers in the region and features our latest efficient data center thinking,”.

The project expansion will house servers, networking equipment and office space needed to operate Microsoft’s cloud services. Necessary infrastructure improvements to the West Des Moines location requiring additional capital investment will support the expansion, such as fiber and roads. As part of the company’s commitment to carbon neutrality, Microsoft is offsetting the gross carbon emissions from this data center by purchasing an equivalent amount of renewable energy credits.

“The City of West Des Moines appreciates the confidence Microsoft has in our City as evidenced by Microsoft’s decision to expand their operations here,” said West Des Moines Mayor Steven Gaer. “Creating a business friendly City and corresponding economic development has been an area of emphasis for the City of West Des Moines for several years. Microsoft’s selection of West Des Moines for expansion is proof that our efforts continue to pay dividends.”

“Today’s many job creation projects demonstrate that companies know they can be successful in Iowa,” said Governor Terry Branstad. “Whether it’s a new company locating here or one that is expanding its operation in our state, the investment these projects bring and the jobs these companies create help keep Iowa’s economy growing.”

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