Apple to build Iowa data centre, get $207.8 million in incentives
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 centres. The company will receive a $19.65 million investment tax credit for creating 50 jobs.
Apple Inc will build a $1.375 billion data centre in Waukee, Iowa, Apple and state officials said on Thursday, with $207.8 million in incentives approved by the Iowa Economic Development Authority and Waukee city council.
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 centres. 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 towards 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.
Foxconn is a major Apple supplier, but is not expected to make any Apple products at its proposed U.S. plant.
The Iowa data centre 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 centre 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 centres in Iowa.
Apple will spend $110 million to acquire and prepare the land for its data centres in Iowa, according to economic development officials.
The bulk of the costs, $620 million, will go towards construction. Apple will spend $600 million on computer equipment, with $45 million going towards other equipment.
Get Latest Business News, Stock Market Updates and Videos; Check your tax outgo through Income Tax Calculator and save money through our Personal Finance coverage. Check Business Breaking News Live on Zee Business Twitter and Facebook. Subscribe on YouTube.
RECOMMENDED STORIES
Retirement Planning: SIP+SWP combination; Rs 15,000 monthly SIP for 25 years and then Rs 1,52,000 monthly income for 30 years
Top Gold ETF vs Top Large Cap Mutual Fund 10-year Return Calculator: Which has given higher return on Rs 11 lakh investment; see calculations
Retirement Calculator: 40 years of age, Rs 50,000 monthly expenses; what should be retirement corpus and monthly investment
SBI 444-day FD vs Union Bank of India 333-day FD: Know maturity amount on Rs 4 lakh and Rs 8 lakh investments for general and senior citizens
EPF vs SIP vs PPF Calculator: Rs 12,000 monthly investment for 30 years; which can create highest retirement corpus
Home loan EMI vs Mutual Fund SIP Calculator: Rs 70 lakh home loan EMI for 20 years or SIP equal to EMI for 10 years; which can be easier route to buy home; know maths
08:30 AM IST