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Microsoft to build $1.1 billion data center in West Des Moines

This news story was published on April 19, 2014.
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WEST DES MOINES – West Des Moines Mayor Steve Gaer announced Friday that Microsoft will begin construction this spring of a data center in southern Polk County. The total investment made by Microsoft for Project Alluvion is expected to be $1.126 billion.

“Beyond the enormous economic benefits associated with Microsoft’s expansion are the invaluable business relationships created with one of the world’s leading companies and the distinction that Iowa and West Des Moines are attractive destinations for the data center operations of global tech companies,” said West Des Moines Mayor Steve Gaer. “Data centers are today’s engine of economic development – generating substantial tax revenue and creating the momentum that draws other businesses.”

Project Alluvion, along with other investments Microsoft has in the area, will bring its total investment in West Des Moines to nearly $2 billion.

“Lieutenant Governor Reynolds and I are pleased to have another major economic development project coming to Iowa,” said Gov. Terry E. Branstad. “Over the past few years, Iowa has seen a number of projects each representing an investment of over $1 billion. Today’s announcement of a $1.126 billion data center project by Microsoft is another indication that Iowa’s economic growth and job creation will continue.”
West Des Moines has been a data center location for Microsoft since 2010 when the Redmond, Wash. software giant began construction of its first data center in Iowa to support increased demand for their cloud services. In addition to construction jobs during the four-phases of development, Project Alluvion is expected to create over 80 full-time jobs.

“As we strive to provide the best possible cloud infrastructure and services to our customers in Iowa and beyond, Microsoft is delighted to expand its data center operations in West Des Moines,” said Dayne Sampson, Corporate Vice President for Microsoft’s Global Foundation Services’ Group. “We value our strong working relationship with the City of West Des Moines and we greatly appreciate the support of the state and local officials in making the area an ideal location for Microsoft to grow in the continued deployment of our cloud solutions.”

Project Alluvion is a win for taxpayers because of its positive net impact on the property tax base, according to Gretchen Tegeler, Executive Director of the Taxpayers Association of Central Iowa.

“We’ve reviewed the financing plan for this project, and believe it fits the criteria we look for when evaluating the use of tax increment financing,” Tegeler said. “Clearly this project cannot happen without the infrastructure upgrades, and based on the property taxes the project will generate, there will be a high net return on investment for the City. Ultimately, all property tax payers and all local governments in the area will benefit from the project, particularly as additional development occurs.”

The area surrounding the data center will receive infrastructure upgrades such as power lines, streets, water lines, fiber optics and sanitary sewer lines and these will help to also accelerate the development of 2,000-3,000 acres for multipurpose land use – including commercial, residential and industrial opportunities.

Development of this area has stalled for a number of years because of the economic recession, lack of infrastructure and the expense of bringing infrastructure to the region in a piecemeal, intermittent fashion.

“The investment of Microsoft to build a data center in Polk County will positively impact our community and greatly advance the long-term development of the southern corridor, said Polk County Supervisor, Angela Connolly. “The economic impact will be felt throughout the county and firmly establish central Iowa as one of the country’s leading technology environments.”

The expansion of Microsoft’s data center operations with Project Alluvion enhances West Des Moines’ national reputation as a preferred destination for global technology development and innovation. In addition to the investment by Microsoft, West Des Moines has also been recognized by Google as the eCity of Iowa, a distinction that recognizes the strongest online business community in each state. West Des Moines has also been recognized by Governor Terry Branstad as the third “Connected City” in Iowa and the 12th in the United States for its efforts to make broadband connectivity a community priority.

“We are proud Microsoft continues to choose West Des Moines to invest in its data center operations. The competitive energy prices provided by MidAmerican Energy, qualified IT workforce and profitable business climate makes central Iowa a prime location for doing business,” said Jay Byers, CEO of the Greater Des Moines Partnership.

Microsoft Corp. earlier this year announced revenue of $24.52 billion for the quarter ended December 31, 2013. Gross margin, operating income, net income, and diluted earnings per share for the quarter were $16.24 billion, $7.97 billion, $6.56 billion, and $0.78 per share, respectively.

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3 Responses to Microsoft to build $1.1 billion data center in West Des Moines

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    LVS Reply Report comment

    April 20, 2014 at 4:02 pm

    What is wrong with Mason City other than we have a worthless City Council and a town full of BRAINDEAD pot heads and meth heads that don’t want to work.

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      Anonymous Reply Report comment

      April 20, 2014 at 4:36 pm

      I think you forget about the narrow minded aresholes with bad attitudes.

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        LVS Reply Report comment

        April 20, 2014 at 6:37 pm

        @Anonymous-sorry I hurt your feeling by leaving you out but I normally don’t include TROLLS.