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Apple will purchase 2,000 acres (8.09 square km) of land in
Waukee, about 20 miles (32 km) west of Des Moines, to build two
data centers. The company will receive a $19.65 million
investment tax credit for creating 50 jobs.
Apple said the project will generate more than 550 jobs in
construction and operations, but did not specify how many of
those jobs would be long-term positions.
Speaking alongside Iowa Governor Kim Reynolds, Apple Chief
Executive Tim Cook said the facility "will create hundreds of
jobs for people in Iowa from construction to engineering."
Cook said Apple will contribute up to $100 million toward a
"public improvement fund" for the city of Waukee, adding the
first project supported by the fund will be a youth sports
complex that "will be open to all."
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.
State subsidies to technology employers have become a key issue
in Midwestern states such as Wisconsin, where Foxconn, formally
known as Hon Hai Precision Industry Co Ltd, is seeking $3
billion in subsidies for a $10 billion LCD panel plant. The
incentive package passed Wisconsin's Republican-controlled state
Assembly last week by a 59-30 margin. [nL2N1L3137] [nL2N1L9121]
Foxconn is a major Apple supplier, but is not expected to make
any Apple products at its proposed U.S. plant.
The Iowa data center will join Apple facilities in California,
Nevada, Oregon and North Carolina, which also host services such
as iCloud, Apple Music and the App Store.
"This new data center will play a very important role in the App
Store's continued success," Cook said. "As the App Store grows,
we look forward to growing in Iowa."
Facebook Inc, Alphabet Inc's Google and Microsoft Corp also
maintain data centers in Iowa.
Apple will spend $110 million to acquire and prepare the land
for its data centers in Iowa, according to economic development
officials.
The bulk of the costs, $620 million, will go toward
construction. Apple will spend $600 million on computer
equipment, with $45 million going toward other equipment.
(Reporting by Stephen Nellis in San Francisco; editing by
Bernadette Baum and G Crosse)
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