Cedar Rapids hotel occupancy reaches record levels, data center construction cited as factor
Data center construction in Cedar Rapids, Iowa, is believed to be a significant factor in the city's record-high hotel occupancy rates and increasing prices. Crews building QTS and Google data centers are contributing to a surge in demand for local accommodations, leading to difficulties for other visitors. The impact is expected to continue for several years as construction projects are far from complete.
Cedar Rapids, Iowa, is experiencing record hotel occupancy rates, with data center construction crews from companies like QTS and Google identified as a major contributing factor. According to data obtained by KCRG from the City of Cedar Rapids and the Local Tourism Department, Linn County hotels are operating at 68.7% occupancy, the highest on record for any city in Iowa.
Martin Malamud, a visitor for the Iowa State Baseball Tournament, described difficulties finding a room in Cedar Rapids and ended up spending a night at the airport due to lack of availability. Other families attending the tournament also reported high prices, with some paying nearly $800 for a single night's stay.
Julie Stow, Executive Director of Cedar Rapids Tourism, confirmed that data centers have "definitely" played a role in the surge, although other entertainment and construction projects also contribute. The timeline aligns with QTS breaking ground, after which hotel tax revenue spiked 146% year-over-year. The QTS Cedar Rapids campus alone has over 4,500 workers on site, with that number expected to peak at 7,000. These projects, including three data center developments in Linn County, are anticipated to continue construction for several more years, suggesting high hotel prices and occupancy will persist.