Tuesday evening headlines: Data centers in Iowa, midterm election ad spending sets record and more
A Common Sense Institute Iowa study says data centers generated $56 million in property taxes in 2025 and could generate substantially more if Iowa changes how the industry is taxed. The report comes as Ames pauses a data center approval after community pushback and as infrastructure concerns about water and electricity remain part of the debate.
A Common Sense Institute Iowa economic study says Iowa could collect hundreds of millions of additional dollars from data centers if the state taxes them similarly to manufacturers. Data centers generated an estimated $56 million in property taxes in 2025, a figure projected to reach $140 million by 2031 and $292 million by 2040; the institute says the amount could potentially double under a different tax structure.
The debate is unfolding as the city of Ames pauses a data center approval to conduct further research following community opposition. Critics have raised concerns about infrastructure strain, including higher water and power costs, while the institute argues the effects vary by community. It cited Cedar Rapids, where Google-funded investments in transmission and generation are expected to increase energy supply and contribute to projected power-bill reductions.