Apple to build new data centre in Iowa at a cost of $1.3 billion

data centre

Apple is planning to build a new data centre in Iowa, and will reportedly receive more than $200 million in tax breaks for doing so. 

The data centre will support Apple’s App Store, as well as its iMessage and Siri applications.

Like all other Apple data centres, the Iowa facility will be powered by renewable energy. Apple says it will create more than 550 construction jobs and cost $1.3 billion.

Apple CEO Tim Cook says: “At Apple, we’re always looking at ways to deliver even better experiences for our customers. Our new data center in Iowa will help serve millions of people across North America who use Siri, iMessage, Apple Music and other Apple services — all powered by renewable energy.

“Apple is responsible for 2 million jobs in all 50 states and we’re proud today’s investment will add to the more than 10,000 jobs we already support across Iowa, providing even more economic opportunity for the community.”

Apple claims to be one of the biggest job creators in the US, responsible for the creation of “2 million jobs”, mostly for developers, who have earned $16 billion in App Store sales to date. Moreover, the company says it spent more than $50 billion with over 9,000 US suppliers and manufacturers.

But Apple is said to be receiving tax breaks worth $213 million for building the data, which will eventually employ 50 people, according to a report on USAToday.com.

But competition between different states in the US to attract big companies to invest in their localities is somewhat intense, so it’s not surprising that some local authorities may be will waive various taxes and red tape to try and make a deal.

Iowa Governor Kim Reynolds says: “We’re honored Apple is choosing Iowa for the site of its most technologically advanced data center to date.

“Apple’s commitment to innovation and renewable energy leadership mirrors our own. This investment in our state is vital as we continue to develop as a technology hub and grow our workforce.”