116 3rd St SE
Cedar Rapids, Iowa 52401
Developer closes on land for Google’s proposed data center in Cedar Rapids for $16.6 million
Signs of progress, but Google ‘still evaluating the potential’ for $576 million project
CEDAR RAPIDS — Heaviside LLC, the development entity behind the proposed $576 million Google data center in Cedar Rapids, recently closed on land slated for the project for $16.573 million and grading is now underway on the site — signs of progress for what would be among the largest economic development projects in city history.
Still, Google, Alliant Energy and city of Cedar Rapids officials wouldn’t say that the data center itself was being built yet. Heaviside’s development agreement with Cedar Rapids calls for the construction of one or more data centers along 76th Avenue SW and Edgewood Road SW in the Big Cedar Industrial Center.
Linn County Assessor’s records show Heaviside on May 22 closed on the 414 acres of land at 6550 Edgewood Rd. SW, which was appraised at $1 million.
The data center was proposed to be located on part of the 890-acre certified portion of the overall Big Cedar site — Iowa's first mega site, which offers hundreds of acres of development-ready land to potential developers. All 1,391 acres of Big Cedar are controlled by Alliant Energy.
“They purchased the property and they're moving soil in order to build the data center,” Cedar Rapids City Manager Jeff Pomeranz said, but he declined to say this meant crews were building the center. “We're pleased with the progress.”
Economic Development and Development Services Director Bill Micheel confirmed crews are grading the property, which he said required Heaviside submitting a grading plan and stormwater pollution prevention permits. He said the developer is working with city staff to submit documents for a building permit and other permits.
Alliant Energy spokesperson Melissa McCarville said in an email that there are no additional updates to share as “Google still is evaluating the potential for a data center site at Big Cedar Industrial Center in Cedar Rapids.”
In an emailed statement, Google responded that “projects of this scale and complexity include pre-development and evaluation activities.”
The development would create at least 31 new full-time jobs that would pay at or above the high-quality wage rate, which starts at $26.20 per hour and ramps up to at least $31.44 by the end of the contract performance period. City officials have said the data center is expected to create hundreds of temporary construction jobs and would likely permanently employ far more than the minimum 31 workers.
The Iowa Economic Development Authority board in March approved the city’s plan to grant $56 million in tax breaks through a 20-year, 70 percent tax exemption.
Water main extension
The city of Cedar Rapids is extending a water main at the Big Cedar Industrial Center, supporting potential development at the site serving some of the city’s larger water users.
The water main extension is funded jointly by Alliant Energy, a $1.5 million share, and the city through $2.1 million in water revenue. The $3.036 million total project costs are less than the initial engineer’s estimate of $5 million.
The project involves installing approximately 5,650 linear feet of 30-inch diameter water main from the intersection of Edgewood Road SW and 60th Avenue SW to Old Bridge Road SW. The first phase of construction is expected to wrap up by spring 2025.
There is an existing line that is stubbed and runs parallel to Edgewood Road SW, only reaching the edge of the Big Cedar site, Utilities Director Roy Hesemann said in a statement.
“The water main is needed to serve the entire Big Cedar Industrial Center development within Cedar Rapids city limits,” Hesemann said.
Asked if Google’s proposal prompted the project, Hesemann said the extension project was prompted “solely by the prospect of development coming to that area.”
Residents have wondered how much water and electricity a data center would use and whether the Google project would raise residents’ rates or deplete the drinking water supply during a drought. Google previously declined to provide specific information about projected water and energy use.
A Google data center in Cedar Rapids would be among the city’s largest water users.
The city’s No. 1 water customer uses an average 11.7 million gallons of water a day — more than three times the volume of the next highest, which uses 3.3 million gallons of water day on average. The top 10 users combined use about 23.8 million gallons of water a day, on average.
City leaders told The Gazette a Google data center would use two-thirds of the largest users. This could be as little as 200,000 gallons per day or as much as 7.8 million gallons, based on the top 10 list.
City officials have said Cedar Rapids has ample water supply to serve the development and looks years ahead to determine whether it needs to make improvements to meet future needs.
The Cedar Rapids City Council on Tuesday awarded the water main construction contract to Anamosa-based Boomerang Corp. The city received 10 bids June 12, and, per state law, the council accepted Boomerang’s $3.036 million bid as the lowest. The highest bid was $4.2 million.
Isacc Davis, of Cedar Rapids, earlier this month asked when the city would see a return on investment for Cedar Rapids spending water revenue on this water main serving private development.
“Big Cedar will certainly generate a lot of water/wastewater revenue,” Hesemann said. “If you consider the revenue from their expected usage alone, it will pay for the city’s share of the water main in less than two years.”
Comments: (319) 398-8494; marissa.payne@thegazette.com
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