Data Center Project Update
Data Center Project Update
March 21, 2024
Today marked a noteworthy update for an economic development project in Cedar Rapids, with Google announced as the leading company behind a potential $576 million data center project.
In February, the Cedar Rapids City Council authorized terms for a development agreement with Heaviside, LLC in support of an application to the Iowa Economic Development Authority’s (IEDA) High Quality Jobs Program (HQJP). The application, made by Google, will be considered at the IEDA board meeting on March 22, 2024. The partnership marks a notable progression in the City's economic landscape.
City Manager Jeff Pomeranz underscored the City’s efforts in championing the project, saying, “I am proud to witness the culmination of more than five years of effort to bring this project to fruition. While additional steps remain in the process, Google's announcement of their potential investment in Cedar Rapids illustrates the dedication of our City’s economic development efforts and demonstrates the attractiveness of Cedar Rapids as a premiere destination for global companies.
“The High Quality Jobs application is a significant milestone, marking an important component in a broader timeline for this potential project. I want to commend the consistent dedication of our elected officials and City staff team who laid the groundwork for this project. Cedar Rapids is uniquely positioned to handle a project of this magnitude, with the talent, resources, and infrastructure to make it happen.”
Mayor O'Donnell expressed enthusiasm for the transformative potential of the project, saying, “We cannot discount the high-quality jobs this project will create, as well as the economic benefits of the project construction and its greater overall long-term impact beyond initial construction.
“You may have heard me say, ‘Cranes beget cranes.’ We have already taken inquiries from other companies based on the knowledge that Cedar Rapids can deliver on this scale of economic development. This sends a signal, not only in Iowa, but across the country, that Cedar Rapids is open for world-class business.”
The development agreement approved by City Council outlines key terms for incentives, including a minimum investment of $576 million for one or more data centers, commencement of construction within three years, and the creation of at least 31 new full-time jobs meeting state wage requirements. Conditional incentives include a 20-year, 70% tax exemption through the State HQJ Program, with Tax Increment Financing rebates available if the HQJ application is not approved.
Explore further details about the project, timeline, and common inquiries, such as water and utilities usage and community improvement funds, in our Frequently Asked Questions document.
