Cedar Rapids has reason to celebrate

Editorializing about things going wrong can make us pretty cynical. But occasionally, we can also be awed.

Regardless of what you think about data centers locating in the Big Cedar Industrial Center, the sight of what’s happening there is remarkable. Construction of the $750 million QTS data center complex and Google’s $576 million facility is ongoing in the Big Cedar Industrial Center, which is located along Edgewood Road SW north of The Eastern Iowa Airport. Watching an industry sector grow in Cedar Rapids, and the scale of these projects is a sight to behold.

Dozens of pieces of heavy equipment are rolling across the sites. The scope of the projects makes it look like a city is rising above a former farm field. The Google data center alone is expected to need more than 1,200 construction workers, and we're already seeing materials being sourced regionally in places like Dyersville and Peosta.

“You can count on multiple years of needing construction employees to make this happen,” said Allie Hopkins, Iowa Server Operations Area Lead for Data Centers at Google.

On Friday, Google executives and local leaders gathered at the construction site to celebrate the project. Google needs the facilities to keep up with demand for Artificial Intelligence development and cloud storage. Iowa has become a prime location for these developments, with the state’s affordable and ample wind energy, low construction costs and government tax incentives.

“Google's commitment to sustainability by pairing its data center operations with renewable energy investments is a testament to what responsible innovation looks like,” said Gov. Kim Reynolds at Friday’s event.

The Google project, for example, is receiving city tax abatements totaling $58 million. The company receives a 70% tax exemption if it creates promised jobs, starting once the facility is finished. It’s expected to employ 100 workers.

Google’s facility will consume a significant amount of energy and water. But the QTS site will use much less water with its waterless cooling system, according to the city. The QTS project has grown without state incentives and has been built on local relationships.

The region and state also have another win. Google also announced a $500,000 investment to integrate AI tools into its training and expand Iowa’s apprentice pipeline, aiming to train over 700 apprentices and upskill current electrical workers by 2030.

Development leaders and city officials created Big Cedar with the hope of attracting large-scale projects. They’ve been remarkably successful in their drive. The $750 million QTS facility is the largest economic development project in the city’s history. Now Google’s $576 million project has been secured, with expansions likely. Other companies may follow.

Clearly, Cedar Rapids leaders have a reason to celebrate.

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