Google Doubles Down on Iowa with $7 Billion Data Center Investment

 KEY POINTS

• Google will invest $7 billion more in Iowa, expanding its Council Bluffs data center and building a new Cedar Rapids campus to meet rising cloud and AI demand.

• The Cedar Rapids project will employ over 1,200 construction workers and 100 operational staff. Google will fund AI training and offer career certificates statewide.

• Iowa’s favorable taxes, regulations, and energy environment attract Google, Apple, Microsoft, and Meta to build major data centers in the state.

Google has been present in Iowa since opening its Council Bluffs data center in 2007. The company has invested $6.8 billion in the complex over the past two decades.

The tech giant plans to double down on its Iowa investment, spending an additional $7 billion on construction and development. The company said the existing data center in Council Bluffs and a new campus in Cedar Rapids will both receive a portion of those funds. 

State officials, including Iowa Governor Kim Reynolds, Senator Joni Ernst, and Representative Ashley Hinton, have praised the investment for its benefits to the state’s job market and community impact.

Google’s Iowa Expansion

Google announced on May 30 its plans to build a new campus in Cedar Rapids, solidifying the company’s interest in the state. A construction start date was not announced, though the multi-phase commercial construction project is expected to be in progress for several years.

The first building is projected to be completed in 2026. Four additional buildings are planned for future phases to build out Google’s second major data center campus in Iowa.

A portion of the new funding will be used to expand the Council Bluffs data center, which has been Google’s main foothold in Iowa since 2007. The expansion reflects the surging demand for cloud and AI infrastructure as both become increasingly integrated in many sectors.

Jobs & Community

The Cedar Rapids project will create immediate commercial construction demand with an ambitious timeline. The campus is expected to employ more than 1,200 construction workers and 100 operational employees once the campus opens.

In addition, Google announced an investment in the state’s workforce development. The company plans to spend $500,000 on AI integration in workforce training and developing electrical apprenticeships. Google will also provide its Career Certificates and AI Essentials to students and staff at all K-12 schools and 12 community colleges throughout the state.

Iowa Data Center Boom

With Apple, Microsoft, and Meta joining Google, Iowa has become an attractive destination for data centers. Officials attribute the data center growth to the state’s favorable tax environment and straightforward regulatory framework.

The state also boasts an attractive energy profile. According to the U.S. Energy Information Administration, Iowa generates over half of its power from renewable sources. This helps companies to meet sustainability goals and reliably power their operations.

Construction economy news and insights you can act on.

Subscribe to our economic reports