CEDAR RAPIDS — Google will invest $7 billion to officially build a data center in Cedar Rapids and expand cloud and artificial intelligence infrastructure in its Council Bluffs complex, more than doubling its existing investment in Iowa.
State and city leaders say the May 30 announcement positions Iowa and Cedar Rapids as leaders in delivering AI technology to the world, signaling the state’s role in staying ahead of emerging technologies.
“This additional investment isn’t just a corporate decision,” Gov. Kim Reynolds said. “It’s a powerful endorsement of our state, of our communities and our potential. It’s a catalyst for prosperity and Iowa’s future, and we are so proud to stand alongside one of the most innovative companies in the world.”
Google has invested $6.8 billion in Iowa since launching its multimillion-dollar data center in Council Bluffs in 2007.
Company officials didn’t share how the $7 billion would be split between Iowa facilities.
“This moment matters because of what it represents for us as a community,” Cedar Rapids Mayor Tiffany O’Donnell said. “It represents confidence that a global community and an innovative force like Google has placed in the people here, has placed in our values and has put their confidence behind us. It represents a vote of confidence in how we have always overachieved in Iowa’s second-largest city.”
Data centers are increasingly springing up in Iowa as the state lures tech companies with its abundance of inexpensive, environmentally friendly wind energy, access to high-speed fiber optic connections and tax incentives.
The tech growth has brought on questions about how much communities’ power grids and water supplies are being eaten up by the energy-hungry industry, but Google and Cedar Rapids officials say the city has ample capacity to support the company’s first data center and more.
Ruth Porat, president and chief investment officer of Alphabet and Google, said it is a privilege to live in a time where AI is emerging as companies seek to use it to advance scientific breakthroughs, fortify cybersecurity and create new jobs.
“It’s been called the golden era of American innovation, and I truly believe it is,” Porat said. “And our deep, longstanding investments in American technical infrastructure and in research development will help the world continue to lead in AI with all the benefits that come. It’s about the economic upside.”
When will the Cedar Rapids data center be operational?
Construction on the first building in the Cedar Rapids data center complex will likely wrap up in 2026, Google server operations lead Allie Hopkins said. Google also is planning four more buildings on the site, so construction will be underway for the next several years.
U.S. Sen. Joni Ernst, R-Iowa, said projects like Cedar Rapids’ new data center “are critical to ensuring that the United States remains a leader in innovation, artificial intelligence … and numerous other emerging technologies.”
U.S. Rep. Ashley Hinson, a Republican representing northeastern Iowa’s 2nd Congressional District, said American leadership in new technology like AI “has never been more important than it is today,” eyeing a need to compete with China.
“This is a battle we must win, and investments like this one will help us to stay ahead in this game,” Hinson said.
Cedar Rapids data center getting $56 million in city tax incentives
The Iowa Economic Development Authority board in March 2024 signed off on the city of Cedar Rapids’ use of $56 million in tax abatements for the $576 million project, which is among the city’s largest on record.
The Cedar Rapids City Council approved a development agreement for the project in February 2024 with a company that was not named at the time to build one or more data centers on the city’s far south side near the Eastern Iowa Airport in the Big Cedar Industrial Center owned by Alliant Energy.
As part of that agreement, the project will create at least 31 jobs paying at least $31.44 per hour.
Cedar Rapids can leverage the state’s High-Quality Jobs program — which provides tax credits and refunds to businesses that move to or expand in Iowa — to give Google a 20-year break on property taxes that would otherwise increase with the completed data center’s assessed value.
But the complex is expected to employ hundreds more as the data center complex gets off the ground. Hopkins said the project will employ more than 1,200 construction workers and 100 operational employees.
New funding for workforce training
In addition to the Cedar Rapids and Council Bluffs investments, the company also announced $500,000 to integrate AI tools into training curriculum and boost the number of apprentices in Iowa.
The initiative will train existing electrical workers and more than 700 apprentices in the state by 2030 in an effort to develop the labor force Iowa needs to build new energy infrastructure.
Google is also partnering with the Iowa Department of Education and Community Colleges for Iowa to offer Googler Career Certificates and AI Essentials to students and faculty at the state’s K-12 schools and 15 community colleges, at no cost to them. This effort is intended to help faculty master the latest AI skills and tools and prepare people for the workforce.
Jebediah Novak, training director at the Cedar Rapids Electrical Training Center, which is training about 250 electrical apprentices, said this funding would help training centers like the one in Cedar Rapids strengthen the workforce.
“The implementation of artificial intelligence, or AI, has presented the United States with the prospect for the kind of innovation which arguably only occurs once in a generation,” Novak said. “To address the challenges that come with this opportunity, it is critical that we develop a highly skilled workforce to not only meet the demands presented by this revolutionary technology, but also embrace the possibilities that come with it.”
Data centers on the rise in Iowa
Google has upped its investment in Iowa facilities before, investing another $600 million in its already $5 billion, 1,000-acre Council Bluffs complex in 2022 and another $1 billion in 2024.
Microsoft and Meta have joined it in Iowa, building data centers in locations including Altoona and West Des Moines. Apple opened a 400,000-square-foot data center in Waukee in 2024.
Cedar Rapids officials also signed off on another development agreement in January for a $750 million QTS data center near Google’s facility, The Gazette reported.
With the revolution of AI reshaping economies, Reynolds said it’s imperative that Iowa’s infrastructure keeps pace with technological advancement. She touted Republican-led tax cuts, streamlined regulations and workforce initiatives as helping draw major investments.
“Today’s transformative investment here in Cedar Rapids reaffirms Google’s role as an AI pioneer and advances America’s leadership position in it,” Reynolds said. “When we build that future here at home, we create high-quality jobs, fortify our digital infrastructure and retain the ingenuity that drives global progress. “
Marissa Payne covers the Iowa Statehouse and politics for the Register. Reach her by email at mjpayne@registermedia.com. Follow her on X, formerly known as Twitter, at @marissajpayne.
This article originally appeared on Des Moines Register: Google announces $7 billion investment in Iowa, including new Cedar Rapids data center
Reporting by Marissa Payne, Des Moines Register / Des Moines Register
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