Software giant has targeted West Des Moines for a major data center buildout From a data center perspective, Iowa has a lot going for it. Its industrial electric rates are 5.71 cents per kWh, near the bottom nationally, according to U.S. data. It has experienced “minor earthquake activity” since the U.S. took control in 1803 under the Louisana Purchase. It’s also far from hurricane trouble, but Iowa is at higher risk for tornadoes, and that may help explain Microsoft’s data center building plans. Microsoft is building a 1.7 million-square-foot data center complex in the West Des Moines area. The project, announced last week, is on top of two other Microsoft data center projects for the area that were announced in 2008 and 2014. In total, Microsoft is creating some 3.2 million square feet of data center space in the West Des Moines area, but in three separate locations. The combined investment is about $3.5 billion. Microsoft may be building its facilities at different locations to minimize the risk of tornado damage, said Clyde Evans, the director of community and economic development for West Des Moines. If a tornado were to strike, “it wouldn’t get them all,” he said. The site of the latest data center, called Project Osmium, is on 200 acres. As a point of comparison, the Pentagon, at 6.6 million square feet, is located on 34 acres, so Microsoft has room to grow. Microsoft’s first data center was called Mountain and the second one is Alluvion. Work on Microsoft’s 1.7 million-square-foot data center will begin next year and is scheduled to be completed, in four phases, by 2022. Data centers aren’t big direct employers, and the total number of employees for the latest data center was estimated around 130. The number one reason for locating in the state is probably low electric rates, Evans said. Microsoft is not commenting on its data center projects, and is leaving it up to government officials to detail its plans. In terms of incentives, Microsoft is getting a refund on the sales taxes paid on construction materials. The company isn’t getting a property tax break. Instead, the city is funding about $65 million in infrastructure improvements, such as roads and sewers, for Osmium, but this cost will be fully funded by Microsoft’s property tax payments. The Osmium data center will generate more than $12 million a year in property taxes, but the taxes collected from all three Microsoft data center facilities, once they are built, will be about $23 million a year, government officials said. Related content news Apple updates its Platform Security Guide It's essential reading for IT admins, security researchers and anyone with an interest in Apple security, now updated for 2024. By Jonny Evans May 10, 2024 4 mins iOS Security Mac MacOS Security feature Q&A: Insurance exec says AI nearly perfect when processing tens of thousands of documents In the second phase of a genAI pilot program, Sedgwick found it could process documents up to 30 pages long and summarize them in minutes, allowing claims administrators to reduce resolution time. By Lucas Mearian May 10, 2024 11 mins Chatbots Financial Services Industry Generative AI tip An awesome Android audio upgrade Whether you're dealing with mumblings from meetings, noises from notifications, or music from commute-time streaming, you've never experienced sound on your phone like this. By JR Raphael May 10, 2024 9 mins Mobile Apps Android Mobile news Strict return-to-work policies may be driving tech workers away In-office mandates aren’t great for employee retention, according to a university study that gathered data from workers at Microsoft, Apple and SpaceX. By Jon Gold May 09, 2024 3 mins Remote Work Podcasts Videos Resources Events SUBSCRIBE TO OUR NEWSLETTER From our editors straight to your inbox Get started by entering your email address below. Please enter a valid email address Subscribe