Microsoft Coming to Iowa

[icejammer]

Iowa incentives umbrella opens wider to lure Microsoft

The House voted Thursday to update the state's business incentives in an effort to convince Microsoft to locate a costly data center in Iowa.

The measure approved on a 99-1 vote would build on incentives created last year that lured Google to build a $600 million center in Council Bluffs.

"We do know there are a couple of locations they're looking at in different states, and if we do this package, we have at least a reasonable basis to believe they will come to Iowa," said House Majority Leader Kevin McCarthy, D-Des Moines. "They have a couple of central Iowa locations they're looking at."

To attract Google to Iowa, the Legislature approved a package that exempted electricity and capital investments from the state's sales tax. The measure approved Thursday broadens the language to make sure that Microsoft would qualify. . . .

McCarthy said the investment "could be as much as a third of a billion dollars."

Many details of the Microsoft package are being kept secret, including sites under consideration.

[icejammer]

from the DSM Register:

House approves tax exemptions for Microsoft

Iowa is on its way to offering tax breaks for computer software giant Microsoft in an effort to lure a project to the state. . . .

"The fact that Google chose Pottawattamie County has made Iowa more attractive for other IT investors," said Rep. Phil Wise, a Keokuk Democrat who led discussion on the bill. "I don't believe Microsoft would be looking at us today if we hadn't done what we did last year."

Microsoft officials declined to offer details about the project this week but some lawmakers have speculated that the investment could be about $750 million and employ more than 50 people.

Microsoft would need to purchase, lease or have an option to buy land in Iowa no later than Dec. 31 in order to qualify for the incentives. The company would have six years following the beginning of its site preparation to take advantage of the tax incentives. After that, it would have to return to seek legislative approval for additional credits. . . .

[Swift]

I wonder: would they locate in CB too?

[icejammer]

Doesn't look too likely.  But one never knows...

[icejammer]

Microsoft to open data center in Iowa

. . . Microsoft Corp. will open a new data center in the state, Gov. Chet Culver said Tuesday.

The center will be built in the Des Moines area, although the specific site has not been chosen, said Stephanie Bjornson of the Iowa Department of Economic Development. . . .

How much money and how many jobs the Microsoft project will bring to the region wasn't immediately clear. Microsoft and Culver's office are expected to make a more detailed announcement about the project within a few weeks. . . .

[icejammer]

It's official: Microsoft unveils plans for West Des Moines data center

Gov. Chet Culver welcomed Microsoft to Iowa today, with the announcement that the Redmond, Wash.-based software giant will build a $500 million data center in West Des Moines.

The "next generation" data center will employ 50-75 workers who will earn about $70,000 annually, said Michael Manos, Microsoft¹s general manager of data center services. The project will be located on 42 acres southwest of the Booneville Road at the intersection of Xavier Road. . .

I guess Microshaft can pay more than Google can...

[icejammer]

More from a related story...

. . . Last week, John Boyd, founder of Boyd Co., a New Jersey-based site selection company, said Iowa could see more data centers.

Good access to fiber optics networks and low-cost energy to power and cool the centers are critical to landing the projects, experts say.

A study by Boyd shows Council Bluffs, Ames and Des Moines rank among the 10 lowest-cost locations nationwide for data centers. Costs include labor, power, and property and sales taxes, among other expenses. Ames and Council Bluffs get high marks from Boyd for their ability to provide workers who can keep information safe.

Iowa State University and the University of Nebraska-Omaha have National Security Agency-recognized computer assurance programs. ISU's Information Assurance Center, for example, teaches students how to defend against hackers. . . .

[icejammer]

Microsoft delays West Des Moines project

Microsoft is delaying its $550 million data center in West Des Moines, the company confirmed on a blog Friday.

The announcement comes a day after the company announced job cuts and earnings below earlier estimates.

“We’re postponing construction of the data center in Iowa that we recently purchased land for,” wrote Microsoft’s Arne Josefsberg and Michael Manos on the blog. “Given the current economic climate we’re going to do the right thing for our business and shareholders and revisit our plans on a quarter-by-quarter basis.”

Microsoft announced plans for the data center in August. It is expected to employ about 75 high-tech workers, earning an average of $70,000 annually.

The Redmond, Wash., software giant announced plans Thursday to cut 5,000 jobs as part of a $1.5 billion cutback in spending.

Microsoft also said Thursday profit in the last quarter fell to $4.17 billion, or 47 cents per share, from year-ago earnings of $4.71 billion, or 50 cents per share.

[Brad]

That or they still think they are going to by Yahoo.

[barattataxicab]

It looks like the merger is going to take place between MS and Yahoo. Does anyone know when?

[icejammer]

Microsoft considers smaller data center in West Des Moines

Microsoft says it’s again considering building a data center in West Des Moines, but the project would be significantly smaller than initially proposed, state documents show.

Instead of constructing a nearly $600 million data center in West Des Moines, the Redmond, Wash., software giant is weighing building a $100 million data farm. Microsoft also would cut from 50 to 25 the number of workers it would hire.

Microsoft’s plans to build a data center in West Des Moines have been on hold since January 2009, when the recession pushed the company to cut as many as 5,000 jobs nationally and $1.5 billion in spending.

West Des Moines city manager Jeff Pomeranz said the city is talking with Microsoft about the project, but knows other sites are being considered. “We’re not it yet. It’s still a competitive situation,” he said. . . .

The company founded by Bill Gates said West Des Moines is one of three data center sites in the Midwest under consideration. . . .

[icejammer]

Microsoft spokeswoman says Iowa data center is a 'go'

Microsoft says it will build a data center in Iowa.

But that's about all it's saying. "Microsoft can confirm that we are building a data center in Iowa, but have no further comments at this time," said Monica Drake, a Microsoft spokeswoman, in an e-mail Wednesday following questions from The Des Moines Register about the status of the center in West Des Moines. . . .

West Des Moines leaders reacted cautiously to Microsoft's statement Wednesday.

"We're not going to pop the cork on the champagne until they call us," said West Des Moines Mayor Steve Gaer. "We feel good about meeting what Microsoft said it needed to make that a viable site. But other than that, we've received no notification" that West Des Moines had won the project. . . .

The company told the state last week that the center could grow rapidly, depending on need. Scott Sanders, the city's assistant manager, said the initial investment could be around $200 million.

West Des Moines leaders have said the road improvements would help the city land technology projects beyond Microsoft's.

City leaders expect the road and utility improvements would begin opening as much as 3,000 acres for development. They say they would like to replicate the success they've found in the area that's home to Jordan Creek Town Center. . . .