Economy

State approves millions in tax incentives for Apple data centers

State approves millions in tax incentives for Apple data centers

Facebook and Microsoft have sizable data center operations in the area.

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 project appears destined for a portion of 3,500 acres of land that Waukee recently annexed. The Des Moines Register reported Thursday that Apple's been given about $207 million in local and state tax incentives.

Cook said Apple will also invest up to $100 million in a public improvement fund focused on development and infrastructure in Waukee.

"This new data center will play a very important role in the App Store's continued success".

The bulk of the subsidy is a planned $188.2 million property tax abatement of 71 percent over 20 years provided by the city of Waukee, according to economic development officials.

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.

"If we want to grow this economy and provide more revenue then we should be doing what we can to bring jobs and businesses to the state of Iowa", Reynolds said to reporters following the announcement. "We look forward to the great benefits this partnership will bring to our community as the project develops over the next two decades".

"It is a minimal investment for the amount of investment that's being done in the state of Iowa", Reynolds added.

Apple already has data centers in California, Oregon, Nevada and North Carolina. "This is an investment that will continue to pay dividends way beyond today".

"Across Iowa, business, schools, developers, and government are coming together to build a new home for innovation in America's heartland", Cook said.

In addition to the promised 50 jobs, Apple has agreed to buy 2,000 acres of land for the $1.4 billion project, enough to allow for future development, said Debi Durham, the state's economic development director. "And as you look at the age demographics and the growth of Iowa, I think it's really hard to challenge the fact there are ancillary growth benefits from making an investment like this", he said.