Google project’s benefits outweigh incentives

Google searched for its next location to build a data center to meet increasing consumer demand for server space. It found a site on the southwest side of Cedar Rapids for its $576 million project, which is good news for the community and region.

It’s the biggest economic investment from a development project in Cedar Rapids history.

The city will provide $56 million in local tax breaks to help make the project a reality, so long as wage targets for workers are met. The city would also give Google break on wastewater discharge rates. Data centers need ample amounts of water to help cool its servers.

But the company also will make payments to a community betterment account of an minimum $400,000 per data center over the next 15 years with a maximum of $6 million per server, or $36 million total. The money would be used “to increase economic development activities, including growth of amenities and infrastructure.”

The community benefits are likely to far outweigh the cost of tax incentives.

Although the data center is projected to employ 31 permanent workers with high-quality wage rates, the number of jobs, based on the experience of other communities, could increase considerably.

Construction of the data center promises to create score of temporary jobs, but expected expansion projects in coming years could create even more construction jobs for local unions and construction firms.

“As demand for Google’s services increases, our capacity must grow to meet this demand,” a Google spokesperson said in a statement. “We are always planning for future capacity needs and are currently evaluating the potential for a data center site in the Cedar Rapids area.”

Cedar Rapids is an attractive data center site due to its large expanse of available land, the availability of Iowa’s green, wind-powered energy sources and stable electricity rates.

In some communities, where data centers are large, steady consumers of power, the built in demand has benefited other electricity customers. That could be an additional benefit here.

Regardless, it’s an impressive development project with the potential for striking deals with other high-tech firms. It will likely lead to other investments in the community. It’s true. You can Google it.

(319) 398-8262; editorial@thegazette.com