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June 25, 2013

Microsoft to Invest Nearly $700M in Iowa Data Center

Microsoft plans to sink $678 million into the expansion of its data center in West Des Moines, Iowa in an effort to give its online services such as Office 365 a boost.

Microsoft’s plan, labeled Project Mountain, will support the company’s cloud services, creating 29 new jobs, according to the Des Moines Register. The data center currently employs 50 people, according to the report.

“The expansion supports the growing demand for Microsoft’s cloud services,” Microsoft spokesman Christian Belady said in a statement. The project represents “our latest in efficient data center thinking.”

Iowa is actively attempting to entice data centers to cities throughout the state with state incentives. Under the incentives, Microsoft will qualify to receive up to $20 million in tax credits. According to PC World, this will include a $5-million investment tax credit, for completing the $677.6-million capital investment project in West Des Moines.

Microsoft first opened the Iowa data center in 2009 and other companies are following its example.

Google has a data center in Council Bluffs, Iowa with plans to push its investment to $1.5 billion.

Facebook said two months ago it would put $300 million into the creation of a data center in Altoona with plans to invest  $1 billion over six years.