Another billion dollar data center investment for Google

Trading $20 million in tax incentives lands billion dollar data center investment for Iowa.

Google's Council Bluffs, IA data center

On the eve of Mobilegeddon, Google has announced that it will be investing another $1 billion into its existing Council Bluffs, IA data center campus. On the heels of their original investment of $1.5 billion, which started in 2007, Google made the decision to announce the additional investment after guaranteeing that it would receive almost $20 million in sales and use tax refunds.

The new investment will be in a four-story data center building, marking the third facility on the 1,000 acre campus and should add roughly 70 jobs to the local economy, more than doubling the number of on-site staff. Both Microsoft and Facebook have followed Google to Iowa as an appropriate location for large data center projects.

With over $38 million in tax incentives over the years to build in the Council Bluffs location, Google has softened the tax blow to the area in a number of ways. They have reportedly donated as much as $800,000 to local non-profits and schools in the area, as well as rolling out free Wi-Fi coverage that is centered around the Council Bluffs area.

While it's important to note that local tax incentives have been a driving force behind state's attempts to lure large data center projects to their locations, the Des Moines Register points out that at least three other non-technology companies have been asking the legislature for low-cost loans and tax incentives (though not on the scale that data center operators have wrangled) to build or expand their facilities in Iowa.