What can we learn from other Iowa data centers?
This article explores what Cedar Rapids can learn from other Iowa cities like Altoona, West Des Moines, and Council Bluffs, which host data centers for Google, Microsoft, and Meta. It discusses the environmental impacts, local government incentives, and economic benefits, noting a shift in how communities negotiate with developers. The piece highlights evolving public opinion and the development of new tools and ordinances for evaluating data center projects.
The article explores the lessons Cedar Rapids can draw from other Iowa cities that have long hosted hyperscale data centers, such as Altoona (Meta), West Des Moines (Microsoft), and Council Bluffs (Google). While some residents like Heather Byers near Altoona find data centers unobtrusive, advocacy groups like Iowa Citizens for Community Improvement and the Sierra Club's Iowa chapter raise concerns about resource consumption, particularly water and electricity use. Google's Council Bluffs operations consumed 1.3 billion gallons of water in fiscal year 2025, and Microsoft's West Des Moines sites used 264 megaliters, although Microsoft is working towards water-positive goals and invested $25 million into West Des Moines Water Works to offset costs.
Early incentives, like Altoona's aggressive 20-year tax abatement for Meta, are evolving as communities gain more leverage. Cedar Rapids recently approved 20-year, 70% property tax breaks for upcoming Google and QTS data center campuses, requiring annual contributions to a city betterment fund. In contrast, Palo officials in Linn County have stated they will not offer tax breaks for a proposed Google project. The Linn County Board of Supervisors is also considering a data center ordinance, reflecting growing public interest and a shift from communities actively seeking data centers to now negotiating stricter terms.
Officials like West Des Moines' Ryan Moffatt and Mayor Russ Trimble, and Altoona's Mayor Dean O'Connor, acknowledge resource strain but emphasize the significant economic benefits, including billions in investment and job creation. Google alone has invested over $20 billion in Iowa since 2007. The University of Iowa has even launched an "Iowa Data Center Decision Tool" to help local governments evaluate proposed projects.