Microsoft Is Investing $678 Million For A Data Center In Iowa

Posted Jun 26, 2013

Microsoft Corporation
 is going to invest $678 million as part of a plan to expand their data centers in West Des Moines, Iowa.  These data centers oversees production and creation of Office 365 and Xbox Live.  This initiative is called “Project Mountain.”  Microsoft will receive a considerable amount of tax credits for the expansion plan.

As part of “Project Mountain,” Microsoft will add additional servers and networking equipment that will focus on their cloud services, according to the Greater Des Moines Partnership.  The Greater Des Moines Partnership offers resources to companies that are moving or expanding in Des Moines.  Microsoft and the city of West Des Moines have been planning the expansion for several years now.  Microsoft will reportedly receive $20 million in tax incentives from the state.

When Microsoft introduced the Xbox One, it became apparent that the company would need to build massive cloud data centers to support the console’s ecosystem.  The Xbox One has several cloud services including the way that games are saved and the Xbox Live service, which includes streaming movies and music.

Microsoft is not the only large tech company that has a massive data center in Iowa.  Four years ago, Google opened a data center in Council Bluffs, Iowa.  Last year, Google expanded their data center and spent a total of $1.1 billion there.  Facebook has a large data center in Altoona, Iowa.