Microsoft to build data center in Des Moines area

Microsoft Corp. confirmed plans Tuesday to build a data center in the Des Moines area, a move that comes about four months after the state approved a package of tax breaks designed to lure the company.

Microsoft spokeswoman Beth Jordan on Tuesday acknowledged the company's intentions to build in central Iowa.

"I can confirm, subject to approval of the state and local assistance, that we're looking at a final list of properties in Des Moines, in that region, for the future construction of the data center," she said.

Stephanie Bjornson, a spokeswoman for the Iowa Department of Economic Development, said the company wasn't releasing the potential site locations, number of jobs and scope of the project. She said the state is negotiating with the company on tax breaks.

Data centers house computer systems and related equipment that provide services for businesses and individual customers.

Microsoft has a data center in Quincy, Wash., and is building three others in San Antonio, Chicago and Dublin, Ireland, said Stacey Derk, the company's director of marketing for global foundation services.

She said decisions about where data centers are built are based on 35 criteria, including customer demand, Internet population in the area, the potential for growth, availability of electricity and connectivity to the Internet.

Microsoft said data center projects differ from one region to another, but the recently approved Texas project provides an idea of the size and scope of the projects.

The center in San Antonio announced in January 2007 requires a $550 million investment by the company in a 400,000-square-foot building, according to a statement from the city of San Antonio.

Microsoft is creating 75 full-time jobs paying an average annual salary of up to $70,000 at that center.

Gov. Chet Culver on Feb. 28 signed a package of business incentives to persuade Redmond, Wash.-based Microsoft to locate the data center in Iowa. The Legislature approved the tax breaks that would require Microsoft to make at least a $200 million investment in the state. A decision was required by the end of the year.

The measure builds on a package lawmakers approved last year in a successful attempt to persuade Google to build a $600 million data center near Council Bluffs. That package exempted electricity purchases and capital investments from the state's sales tax.

The new law updated the state's business incentives to make it clear they cover Microsoft.

Culver released a statement welcoming the company to Iowa.

"Their decision to make Iowa their newest home will have a tremendous impact on our local economy and our state as a whole," Culver said. "Microsoft's innovative spirit is a perfect match with that of our hard working people."

Senate Majority Leader Michael Gronstal, D-Council Bluffs, said technology based companies look at Iowa because of the well educated work force and good training programs at community colleges.

"It's a continued sign that we're diversifying Iowa's economy," he said. "I think it's another piece of good news for Iowa's economy."