Microsoft Plans $1.13 Billion Data Center Project In Des Moines, Iowa

West Des Moines Mayor Steve Gaer has a plan for his city, and it involves attracting major technology companies to Central Iowa. So far so good: Microsoft is going to spend $1.13 billion on building a data center in West Des Moines to support its online services.

Dubbed “Project Alluvion”, the data center will be phased in over a 4-5 year span and will create some 84 jobs and generate $8.2 million in annual property tax revenue for the city, schools, and county and represents a total investment in the area by Microsoft to nearly $2 billion.

Microsoft Project Alluvion
(Credit: State of Iowa)

In conjunction with the data center construction, the surrounding area will see infrastructure upgrades including roads, sewers, water, power, and more.

Perhaps most importantly for the area, Microsoft’s data center is expected to attract additional tech companies. Gaer told the Quad City Times that he expects about 3,000 acres to be developed for and by other tech companies, some of whom have already reached out to the city in light of Microsoft’s presence there.

“We really do think that central Iowa will be the leader in global tech companies when it comes to data-center and related businesses,” said Gaer. “We think we have huge momentum. We believe our best days are ahead of us.”