Apple gets $208M in tax breaks to build Iowa data center

Posted August 25, 2017

Apple CEO Tim Cook was in Waukee this afternoon to announce the deal alongside Gov. Reynolds and other local politicians.

Apple will build a new data center in America's heartland.

State and local authorities have collectively approved roughly $208 million in tax incentives for the project. Cupertino will also contribute about $100 million to local community development and infrastructure, including a youth sports campus. "This puts Iowa on the world stage". Cook said the facility, which will run entirely on renewable energy, will help power Apple's App Store.

The city of Waukee approved multi-year property tax abatements and infrastructure improvements totaling $194 million. "This gives us an opportunity with a global company like Apple to say we are the place to be, this is where your business should locate".

"If we want to grow this economy and provide more revenue, then we should be doing what we can to bring jobs and businesses to the state of Iowa", she said.

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Reynolds, speaking briefly to reporters after the announcement, defended the use of the state's $19.6 million in tax credits at a time when the state budget shortfall that may require a special legislative session to address, saying it's a minimal investment for the return Iowa will get. "This is an investment that will continue to pay dividends way beyond today".

Lost in the feel-good drama of Apple Inc.'s decision to build a sprawling orchard of data servers in Waukee is the long-term benefit to the city in the form of a unique fund that the corporate behemoth will seed.

Chris Murray discussed details of the project with fellow members of the Iowa Economic Development Authority (IEDA) board. Professor ofEconomics at Drake, Tom Rootsays it makes sense Apple wants to build its newest data center here.

Silicon Valley CEOs have publicly prioritized creating tech jobs in America over the past year, with many trying to walk a delicate line to appease both supporters of President Donald Trump and Silicon Valley's more liberal workforce.