DES MOINES – Gov. Kim Reynolds, Lt. Gov. Adam Gregg and Waukee Mayor Bill Peard joined Apple CEO Tim Cook Thursday afternoon to announce the company’s significant investment in Iowa. At special meetings earlier today, the Iowa Economic Development Authority (IEDA) Board and the Waukee City Council took action to support a more than $1.3 billion data center.
Apple plans to purchase 2,000 acres of land in Waukee. The first phase of the project is two state of the art data center facilities. They will serve North American users of iMessage, Siri, the App Store and other Apple services. Like all Apple data centers, the proposed facilities will run entirely on renewable energy.
“Apple’s significant investment and commitment to grow in Iowa is a clear vote of confidence in our state,” Gov. Reynolds said. “This announcement further solidifies Iowa as a hub where innovation and technology flourish and demonstrates this is a place where world-class companies can thrive.”
For the past 20 months, state, regional and local officials have been working with Apple to find a suitable Iowa location for the company’s next data center facility. The company selected a site on the west side of Waukee to build the first two buildings. Apple will also contribute up to $100 million to a newly created Public Improvement Fund dedicated to Waukee community development and infrastructure.
“The City of Waukee is excited to be selected for this project,” Mayor Peard said. “After the responsible leadership and planning from our city council and staff, we are thrilled to welcome Apple’s investment in the City of Waukee. We look forward to the great benefits this partnership will bring to our community as the project develops over the next two decades.”
The IEDA worked with the Greater Des Moines Partnership and Waukee once the company’s project team narrowed its Iowa search to one site. Waukee acted to support the project Thursday morning with a local tax abatement and infrastructure improvements. Subsequently, the IEDA Board approved tax incentives via the High Quality Jobs program for the more than $1.3 billion project that will create at least 50 jobs at a qualifying wage of at least $29.12 per hour.
“Economic development projects are partnerships between companies, communities, states and others,” Lt. Gov. Gregg said. “Many individuals and organizations were involved in making this project a reality—one that will pay dividends for years to come.”
Data center projects have economic impact well beyond the permanent jobs created and the initial capital investment made. A recent study released by the U.S. Chamber’s Technology Engagement Center estimates that a typical data center employs 1,688 local workers, provides $77.7 million in wages, produces $243.5 million in output along the local economy’s supply chain and generates $9.9 million in revenue for state and local governments.
Every year thereafter, the data center supports 157 local jobs paying $7.8 million in wages, injecting $32.5 million into the local economy and generating $1.1 million in revenue to state and local governments.
Iowa is well-positioned to continue attracting data center investments in the future because of its geographic location safe from hurricanes, earthquakes and rolling blackouts, coupled with affordable electric rates and high percentage of electricity generated by wind.
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FROM THE APPLE NEWSROOM:
Apple today announced plans to build a 400,000-square-foot, state-of-the-art data center in Waukee, Iowa, to better serve North American users of iMessage, Siri, the App Store and other Apple services. Like all Apple data centers, the new facility will run entirely on renewable energy from day one.
Apple’s investment of $1.3 billion will create over 550 construction and operations jobs in the Des Moines area, and the company is contributing up to $100 million to a newly created Public Improvement Fund dedicated to community development and infrastructure around Waukee.
Apple’s $1.3 billion investment will create over 550 construction and operations jobs in the Des Moines area.
“At Apple, we’re always looking at ways to deliver even better experiences for our customers. Our new data center in Iowa will help serve millions of people across North America who use Siri, iMessage, Apple Music and other Apple services — all powered by renewable energy,” said Tim Cook, Apple’s CEO. “Apple is responsible for 2 million jobs in all 50 states and we’re proud today’s investment will add to the more than 10,000 jobs we already support across Iowa, providing even more economic opportunity for the community.”
The new Public Improvement Fund, to be established and managed by the City of Waukee, will support the development of community projects like parks, libraries and recreational spaces, as well as infrastructure needs. The first project the fund will support is construction of the Waukee Youth Sports Campus featuring a greenhouse, playground, fishing pier and fields for high school and public sporting events.
Apple will be working with local partners to invest in renewable energy projects from wind and other sources to power the data center. Apple has pledged to power all of its global operations with 100 percent renewable energy, and has already reached that goal in the US and 23 other countries.
“We’re honored Apple is choosing Iowa for the site of its most technologically advanced data center to date,” said Iowa Governor Kim Reynolds. “Apple’s commitment to innovation and renewable energy leadership mirrors our own. This investment in our state is vital as we continue to develop as a technology hub and grow our workforce.”
“Waukee is proud to welcome Apple,” said Waukee Mayor Bill Peard. “This new facility will bring with it high-quality jobs and important infrastructure developments for the city. We look forward to a continued partnership with Apple on this effort for decades to come.”
Construction on the data center is expected to start early next year and Apple plans to bring it online in 2020.
Apple is one of the biggest job creators in the United States, responsible for 2 million jobs. Last year, Apple spent over $50 billion with more than 9,000 US suppliers and manufacturers. Since the launch of the App Store in 2008, US developers have earned over $16 billion in App Store sales worldwide.
What they’re saying: Apple data center investment a big win for Iowa
DES MOINES – Following a joint announcement from Apple CEO Tim Cook, Gov. Kim Reynolds, Lt. Gov. Adam Gregg and Waukee Mayor Bill Peard on Thursday that the company will make a significant data center investment in Waukee, many are saying the center is a big win for the state.
Bloomberg: Apple gets $208 million in tax breaks to build Iowa data center
The economic development board’s chairman, Chris Murray, said such projects bring people who build homes, generating tax revenue and causing other businesses to explore moving to Iowa.
“They say we should go to Iowa because we have these epicenters there. And as you look at the age demographics and the growth of Iowa, I think it’s really difficult to challenge the fact there are ancillary growth benefits from making an investment like this,” he said.
CNBC: In Iowa, Apple CEO Tim Cook touts its new data center jobs as the ‘future’ of America
“Apple is going to continue to invest in that future, for Waukee, for Iowa and for America,” Cook said.
CNET: Apple’s next data center will be in Iowa
In addition to building the data center, Apple is giving up to $100 million to a public improvement fund that will support community projects and infrastructure needs in Waukee.
CNN Money: Tim Cook: Apple will invest $1.3 billion in Iowa
“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,” Cook said.
Des Moines Register: Apple is the latest tech giant drawn to Iowa
“It’s a really positive thing for Iowa that these companies are putting their prized possessions in the hands of Iowa,” said Brian Waller, president of the Technology Association of Iowa. “I just think to have a fourth titan of the tech industry, and one you visibly hold in your hand or the majority of people hold in their hands, it’s just a great thing.”
KCCI: Apple to receive $208M in tax breaks for 2 new data centers
Matthew Mitchell, an associate professor of international business and strategy at Drake University, said the incentives are part of doing business, and even with a tax break, the new center will have a huge economic impact.
“When I see the 71 percent abatement, I also think it’s about 29 percent revenues that didn’t exist the very previous day,” Mitchell said. “You have the prestige of doing business with one of the most successful companies in the world.”
PC Mag: Apple commits $1.3B for Iowa data center
“Across Iowa, businesses, schools, developers and government are coming together to build a new home for innovation in America’s heartland,” Cook said. “We see that commitment in Iowa’s education system and in the value that you place on creativity, adaptability and new ways of thinking….we admire what you guys have accomplished, and we want to be a part of it.”
The Gazette: Apple CEO Tim Cook touts data center in Des Moines visit
Jay Byers, chief executive of the Greater Des Moines Partnership, said Thursday’sannouncement continues to enhance Iowa’s status as the “silicon prairie” and will further build out the supply chain associated with these large data centers.
“It’s a huge win for our economy,” Byers said. “Central Iowa is now a global hub for data centers.”
Venture Beat: Apple to build data center in Iowa, joining Microsoft, Facebook and Google
Tech companies are attracted to Iowa because of the prominence of its renewable energy industry – Governor Reynolds said that 36.6 percent of Iowa’s electricity was generated by wind last year, and Cook said that the Waukee center, like its other U.S. data centers, would be powered using 100 percent renewable energy.
Washington Post: Why Iowa is giving Apple $208 million for a project that will create 50 full-time jobs
This isn’t a deal about workers, though. At least, not directly. At a time when government officials are partnering with companies to boost employment, Apple’s agreement with Iowa lawmakers highlights another reason states are courting businesses with colossal discounts: corporate investments can help rural communities afford to grow.
Amazon is requesting a RFP for a location for a second headquarters facility. How many of you NIT readers are mad that Bookmeyer and local economic development agencies aren’t ‘wooing’ Amazon to locate this project here?
curmudgeons – public servants getting richer than a bitch.
T I F when used other than public service is a gift to corporations and the elected officials in that district who receive a kick back . $$$$$$
It really comes down to whether you want to live in a community that grows and offers good job opportunities or live in a place like Mason City or Worth County where the curmudgeons call the shots and the population declines and there are no jobs.
All this for 50 jobs in the end wtf.
The college of accounting – then all this TIF/abatement money the corporation recieves from the county must be printed by city hall because it does’nt come from thin air and I can see the payments made for tax refunds for these corporations – take it out of the general fund and borrow the money to cover it. Thereby the city/county still pays for it by using money that should have gone for public works/workers and public improvements. You still a lieing Dimm and most likely a elected official on the corporate take payroll.
The money doesn’t come out of ‘thin air’. Geezus you are stupid.
To even begin to explain this to you, first you’re going to have to recognize TIF and tax abatements are not the same thing. Can you get to this point?
BTW, aren’t you the same dullard who tried to claim that Central Springs Schools pays property tax?!?!
The “orange avatar” Anonymous is one of the two biggest dumbasses on this site, probably even North Iowa.
He has absolutely no comprehension about reality or how things really work.
It is uselese to attempt to converse with him as he is a total idiot.
Everything is the Democrats fault & the Worth county supervisors.
In the animal world, he would the prime candidate for thinning the herd.
In the animal world he would be at the bottom of the food chain. In the human world he is at the bottom of the gene pool.
Bullshit, this is a decrease in the tax rate for 10 years not a “payment” as you state in your post. The county will still get more tax dollars that it is receiving now so I don’t see a problem. Your post is just wrong on it’s face, learn the facts.
TIF is an additional tax and alot of states are in the process of elimination this NOW corporate gift – paid for by the property owners.PS you must be one of those Liberal Dimms I heard about on fake news CNN.
For something to be ‘additional’ there would be a quantity added to something. TIF absolutely, positively,100% is not an additional tax. If your tax bill is $2000 before a TIF district is created, your tax bill after the creation of a TIF district is still $2000.
What is confusing you is the TIF line item on your property tax statement. What changes in a TIF district is now ‘x’ amount of your $2000 tax bill is going to debt service on a TIF bond. It’s not a extra tax. If the TIF district didn’t exist, you’d still pay $2000.
What community college did you flunk out of?
I see you said LEVY – NOT lowest property taxes – but levies + added to your original property tax – extra charge as anyone can see on their property tax assessment breakdown under TIF = added tax =added $$$$ for corporate owned elected fat cat officials..
Ive told you this probably 50 times now. TIF is not additional tax. How can I state that to you any more clear?!?!
You would pay the very same tax amount whether a TIF district existed or not.
Just because you don’t understand a concept doesn’t mean it’s automatically Bad. Please, please Learn how TIF works. Many communities have used this financing mechanism very astutely and to the benefit of the community.
Hey dummy, TIF is not extra tax like you are erroneously trying to tell everyone.
Do you vote? I pray that you do not.
Someone is trying to explain how TIF works to you, but you’re not listening. TIF isn’t extra tax and it’s not the same as a tax abatement. This is like someone trying to tell you 2+2=4. You keep trying to say it’s 5 and anyone who thinks it’s 4 is a liberal democrat.
T I F was first introduced for blighted areas in municipalities – public – somehow the elected officials were swayed $$$ by corporations to include them also – gift ! Right now Chitcago has 474 of these TIF’s going on and the city is broke -the state is broke -and finally the citizens are going broke and moving OUT! Nothing is free – someone has to pay = the property owners in that district who funded the FREEBIES. Thanks for the double talk on behalf of all corporations looking for a freebie.
Not sure what your point is. West Des Moines has used TIF many, many times and West Des Moines has some of the best paying jobs in the state along with one of the lowest property tax levies in the state.
Tax abaetment and T I F are basically the same – screw the property owners in that state/county !
They’re not the same at all. And I certainly would not make the broad proclamation that ‘they screw property owners’. In fact, many communities have used either (or both) mechanism to the benefit of tax payers.
Tax abatement = T I F = property owners will pay the taxes for this company for 10-20 years -4 million per job created – man I guess I flunked college accounting ?
Tax abatements and TIF are not the same. Two completely different mechanisms.
Similarly, there is a Toyota/Mazda assembly plant looking for a spot to build and certain Iowa cities are under consideration. Before the yellow journalism that we’ve come to expect from this ‘news’ site tries to spin this as being Eric Bookmeyers fault, I thought it would be good to set the record straight in that Mason City does not come close to meeting the minimum site requirements for this proposal either.
Rather than trying to blame Eric for everything, maybe this community would be better served by figuring out why they aren’t meeting minimum requirements for these types of opportunities and investing in things that would address these shortcomings.
2 minutes ago I just read on infrowars (Alex Jones) that APPLE donated $1,000,000,00 to ANTIFIA an anti American far left terrorist organization ????? .
If you are a consumer of Alex Jones no wonder you are a french fry short of a happy meal and taking shit all the time. Now we understand.
I just read on the internet that you are an idiot who cannot or refuses to process information correctly. What are you going to do when the spoon you use to stir the pot is taken from you?
I am moving to Waukee. Woohoo!
Yes, local economic development representatives inquired about this prospect, but Mason City did not meet the minimum site requirements set forth in the development RFP.
The community had a collective IQ that was too low to meet the minimum standard is what they said